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To: ronho who wrote (16747)	11/26/2001 8:55:24 AM
From: ronho	Respond to of 34857

VOD dismisses EDGE. Won't be suckered into the technology. Vodafone Steps Back from Edge By Electronics Times , Nov 26 2001 Vodafone, the world's largest mobile comms network operator, has publicly stated that it does not want to use the Edge enhanced data rate system on its GSM networks. Sir Christopher Gent, group chief executive, said: "We have taken the view that if we can avoid going to Edge then we will do. One of the problems with Edge is that it becomes another addition to the handset." Instead, Vodafone is looking to use existing GPRS technology to deliver the so-called 2.5G multimedia services that will encourage its subscribers to ultimately trade up to its third-generation (3G) network. Thomas Geitner, chief executive for group products and services, says Edge will almost certainly not be used in urban areas, where Vodafone intends to go straight to 3G technology: "[But] we might look into Edge for rural areas as an overlay to the existing network, if there is demand there for multimedia." It is clear from Vodafone's 3G rollout strategy that such a move would be some way down the line. The 3G launch, due in the second half of 2002, is likely to be based around dual-mode GSM/GPRS and UMTS standards. Edge is not mentioned in Vodafone's comments on its strategy for delivering 3G services that appeared in its interim results document and presentations. By contrast, GPRS is played up as the most efficient migration path. Vodafone's comments are yet another blow to Edge technology, coming only days after a group of test and infrastructure companies had pointed to little interest in using the standard for GSM networks (Electronics Times 12/11/01). Avoiding Edge would also appear to be in line with Vodafone's efforts to control costs. The company has already said that it wants to reduce handset subsidies as it concentrates on raising average revenues from existing customers rather than adding new subscribers. Edge would raise the cost of phones. Even for 3G, Sir Christopher signalled that his company is only prepared to pay slightly more in terms of subsidy per handset. The move up to GPRS equipment from GSM had involved only a "small increment" he says, and Vodafone will be looking for something similar for 3G. thefeature.com