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To: Peter J Hudson who wrote (8931)	1/24/2001 12:08:20 PM
From: Eric L	Read Replies (1) \| Respond to of 34857

re: More Gloom for 2.5G Data (GPRS) >> Mobile Data Timetable In Doubt Dan Roberts January 22 2001 Financial Times Two of Europe's largest mobile phone networks have cast doubt on the widely accepted timetable for introducing new mobile internet services. Telecom Italia Mobile (TIM) and Vodafone both believe that so-called "2½-generation" mobile phones will not be sold in significant volumes until early next year. Orange, which on Monday confirmed plans to raise E8bn (£5.12bn) through a flotation, is confident of a full launch in the second quarter of this year. It rejects growing fears in the industry that problems will delay the introduction of the new high-speed internet system, General Packet Radio Switching (GPRS). The disparity over timing comes at an awkward time for Orange. It has been forced to lower the valuation range for its shares amid uncertainty over whether these new services can compensate quickly enough for a predicted fall in revenues from voice calls. GPRS handsets were expected to go on sale in large numbers for Christmas 2000 after several European networks began trial launches last summer. But software glitches and component shortages have meant only a handful have ever been sold. TIM, which runs the largest mobile network in Europe, privately believes the industry will not now be ready for a mass market launch until well after Christmas 2001. "It will probably be summer 2002 before most of the handsets we have on sale are GPRS," said one TIM executive. "I also think there is some over-hyping about the timing of third-generation phones. My guess is 2004 rather than 2002." On Monday Orange was still predicting a 2002 launch for third-generation phones, although it said this was largely in the hands of manufacturers. In the meantime, GPRS technology promises significantly faster connection speeds for internet browsing. Operators had hoped it would compensate for the widely acknowledged flop of internet-enabled, or WAP, phones using second-generation networks. Vodafone, the world's largest mobile operator, is also sceptical about the likelihood of substantial GPRS sales this year. It said it had not changed its plans for an initial launch in the UK in the middle of this year. However, it is uncertain about the availability of GPRS handsets offering higher data speeds. Vodafone predicted these so-called "four time slot" handsets should prove popular but were unlikely to be available until the end of 2001 and not on sale in large numbers until early 2002. Nokia, the world's largest handset manufacturer, has yet to announce its first GPRS handset but a spokesman said predictions of substantial delays were "overly gloomy". << - Eric -