Handset shortage could delay Vodafone launch Paul Durman
search.thetimes.co.uk September 12, 2004 VODAFONE is still unsure whether it will have the necessary stocks of handsets to support the British launch of its “third generation” (3G) service this autumn.
The mobile-phone giant is working on plans to introduce a new range of video and entertainment services made possible by 3G networks. David Beckham, the Real Madrid and England footballer, is expected to figure in an expensive television advertising campaign to accompany the launch.
However, industry sources said Vodafone was still struggling to resolve problems with the technology in trials expected to run until mid-November.
They said the company may have to delay the launch, missing out on the important Christmas sales period.
Rivals expect Vodafone to concentrate its initial supplies of 3G handsets on offering upgrades to existing customers of Vodafone Live — the name it gives to its current data services, which include ringtones, games and news.
Vodafone acknowledged that handset delivery remains a “variable”. A spokesman said: “History and experience says that whatever the manufacturers say, you only believe it when you have the things on a boat heading for where they’re supposed to be heading. Is that going to happen or will there be a last-minute problem?” Vodafone, the world’s biggest mobile company, is keen to avoid the embarrassments that accompanied the launch of 3, Britain’s first 3G mobile-phone operator, last year. It was forced to delay its launch, struggled to cope with a plethora of technical and administrative problems, and was unable to secure the supplies of handsets promised by NEC and Motorola.
It missed its initial sales targets and only resolved the shortage of handsets early this year.
Vodafone insisted it did not have a problem with getting video services to work. A spokesman said: “I am sure there are software and other issues that need to be ironed out. But there is no technical issue that is causing us a problem in terms of launch timing.”
One industry expert said Vodafone was nervous about promoting a service, such as video messaging, that it may not be able to offer nationally because of the geographical limitations of its 3G network. She said Vodafone was having problems with video streaming.
Vodafone is testing 3G handsets from Samsung and Sony Ericsson with about 5,000 British customers. |