To: Eric L who wrote (21638 ) 8/9/2002 12:40:49 AM From: elmatador Read Replies (3) | Respond to of 34857 Vodafone warns of 3G services delay Back to square one Eric: Blaming on non-availability of the terminals. This gives reason for operators not to build infrastructure. Which in its turn will make room for WLAN to take this thing over. Vodafone warns of 3G services delay By Robert Budden and Nicholas George Published: August 8 2002 21:57 | Last Updated: August 8 2002 21:57 Vodafone has said it will not sell any 3G mobile phones outside of Japan this year given a shortage of suitable handsets. The decision, which analysts interpreted as a delay by the mobile operator, means Vodafone will not begin actively marketing 3G services in Europe until well into next year. Vodafone had previously said it would launch 3G services in the UK, Germany and Spain in the second half of the current year. The announcement was seen as another warning that revenues from 3G services will be further delayed by technical problems and handset shortages. It follows revelations that Hutchison 3G, the 3G-only-operator majority owned by Hutchison Whampoa, had been experiencing technical problems with its 3G trials. Hutchison admitted that some of its users could experience "dropped calls" where they roamed from its 3G network to the 2G networks of its partner operators. Vodafone, along with most other mobile operators, is understood to have experienced similar problems with its trials. Analysts said handset shortages and technical problems were having an impact on infrastructure spending. Operators were seeking to minimise the financial outlay on 3G infrastructure until they were confident they could widely market the services. But they said operators with strong 2G businesses were better positioned to weather the delays. "Delays in handset supplies are hurting the new entrants hardest as they don't have any alternatives," said Simon Weeden, analyst at Goldman Sachs. The problems are likely to focus attention on Hutchison 3G which has committed to having "paying 3G customers" in the UK and Italy before the end of the year. It reaffirmed this commitment yesterday saying it was confident it would receive delivery of 3G handsets this year. The pressure on operators was highlighted this week when Orange in Sweden asked local regulators for a relaxation of stringent network roll-out requirements. This plea was yesterday supported by rival operators. Tele2 and Vodafone, the second and third largest mobile operators in Sweden, said they would support Orange's attempt to have the conditions for the 3G licence renegotiated. However they were not planning to put in applications of their own. They said they hoped Orange's application would open up a debate on the issue of 3G network costs.