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T-Mobile UK To Launch 3G This Year?

August 18, 2003 - source: BWCS

Rumour has it that the UK’s second 3G service will be up and running by Christmas. According to a story in Telecom.paper quoting ‘a well-placed source’, German-owned operator T-Mobile is to start a 3G trial with hundreds of customers in the London area in October in preparation for a launch just before Christmas.

The news, if indeed true, is not likely to be welcomed by existing operator Hutchison 3G, which was no doubt hoping to have the lucrative Christmas business all to itself. Neither Orange nor O2 are planning to start their 3G services before next year, while Vodafone says it is aiming for an autumn launch in ‘major European markets’ but has repeatedly fallen behind its stated rollout schedules.

For T-Mobile, a quick UK launch following its German 3G debut scheduled for the third quarter this year would certainly make sense. The company is already trialling UMTS services in a major pilot covering 23 cities in Germany, and getting a headstart on its major rivals could be a smart move, now that UK consumers are finally beginning to show some interest in 3G. The latest subscriber numbers for 3, to be published later this week, are expected to be a long way off Hutchison’s target of 1 million by the end of the year, though its strategy of cutting prices and giving away free handsets is beginning to bump up subscription sales, now estimated at 10,000-12,000 a week.

Whatever happens, this year’s Christmas is not likely to be a season of peace and goodwill to all men. In addition to the Big Four operators, new entrant Tesco Mobile is expected to be pushing cheap own brand pay-as-you-go phones out to its 14 million supermarket customers, while rival MVNO Virgin has just announced signing its 3 millionth customer after only three years of operation. Both Virgin and Tesco will be able to undercut the other operators since they have no network infrastructure to support. A price war will be hard to avoid.

 


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