VOD giving away WCDMA data cards in Germany.
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FRANKFURT, July 16 (Reuters) - Telecoms giant Vodafone Group Plc VOD.L slashed to one euro from nearly 300 the price of a card that allows laptop computer users to access the Internet through its high-speed mobile network, it said on Friday.
Vodafone launched the 3G card, which allows users of portable computers to read email and surf the Internet up to six times faster than over the regular mobile phone network, in February. It had been selling the card for at least 299 euros ($369.3) and competitors offer similar cards for between 149 and 285 euros.
A spokesman for Vodafone said sales of the card had been as expected but declined to be drawn on precise numbers. He said the price cut, which is good until the end of September, was meant as an "interesting proposition" for potential customers, who have to pay for use of Vodafone's network.
Vodafone competes with Deutsche Telekom's DTEGn.DE T-Mobile and the German units of Dutch KPN KPN.AS and Britain's mmO2 OOM.L on Germany's 22-billion-euro mobile phone market, Europe's largest.
Between them, they spent 50 billion euros in 2000 for permits to provide 3G services in Germany.
With three-quarters of Germans already using a mobile phone and few potential new customers, operators are hoping to increase revenues by encouraging current users to upgrade to 3G.
Industry sources said Vodafone's move raised eyebrows at rivals who fret about a price war if others feel forced to follow Vodafone, the second-largest operator. "Most are shaking their heads as this is clearly going to drive down prices," one source said.
"Possibly, they (Vodafone) overestimated demand and are now trying to sell down their inventories," the source said.
For the time being, all other operators said they had no plans to cut the subsidised prices for their data cards, which go for 149 euros at T-Mobile, 199 euros at KPN's E-Plus, and 285 euros at mmO2's O2 Germany.
However, T-Mobile said it would launch this Monday a new three-month 3G trial plan that includes free downloads. Last week, T-Mobile cut its rate for picture messages sent over cameraphones by as much as 75 percent to 0.39 euros. |
