The launch by Vodafone and T-Mobile of mobile data services on third-generation (3G) wireless networks in the UK should pave the way for increased 3G competition and a broader range of services.
Vodafone officially launched its European 3G network on 12 February, with service to be made available in Germany, Italy, the Netherlands, Portugal, Spain, Sweden and the UK by mid-March. T-Mobile's UK network went live on Monday, joining the company's networks in Germany and Austria. Both networks will initially offer high-speed wireless Internet connections for laptop computers via a data card. Orange is believed to be planning a 3G launch for this summer.
The companies join Hutchison's 3 UK, which launched services nearly a year ago, on 3 March, 2003. Three has focused its efforts on selling consumer-oriented services such as video downloads and video calling, but fell far short of its target of signing up one million UK subscribers by the end of last year. Three does not sell data services.
Data killed the video star?
Competition from T-Mobile, Vodafone, Orange and O2 is likely to shift the focus of 3G from video downloads to business-oriented wireless data services. The arrival of such services could put pressure on companies such as BT and The Cloud, which offer nationwide networks of Wi-Fi access points, or "hot spots".
Wi-Fi, a type of wireless local area network, is an increasingly popular way of getting online, but Wi-Fi networks rely on the installation of hot spots in locations such as airports, trains and coffee shops. 3G networks, on the other hand, offer the promise of high-speed access anywhere, although coverage is currently centred on major cities and transportation routes. Where 3G coverage isn't available, data cards switch to an operator's slower GPRS network.
