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Vodafone Chief Warns of Trouble Ahead

February 25, 2004 -source: BWCS

Vodafone's CEO, Arun Sarin, struck a note of realism at 3GSM in Cannes yesterday. As executives from phone companies all over the world were still slapping each other on the back at the news that somewhere on the planet the one billionth GSM customer had just picked up a mobile for the first time, a long-faced Sarin outlined a troubled start for 3G.

The theme of the lecture was delay. Sarin believes that product deficiencies will hamper 3G roll out throughout this year. T-Mobile Chairman Herr Obermann was happy to join Sarin as they put the boot into handset vendors. Neither of the big cheeses believes that affordable and dependable handsets will be available until at least the fourth quarter of this year.

Warming to his theme the Vodafone head was scathing of the current range of 3G phones. The former Airtouch head railed "They're bulky, they get hot, and they don't have enough battery life. The experience today is unacceptable for us to deliver to our customers."

While others in the industry are clearly champing at the bit to start the great 3G race, Sarin clearly wants to wait until handsets improve and customers can be guaranteed a better experience. Laying his cards clearly on the table he concluded "We will wait until such a time that we have handsets that are clearly superior to the 2G and 2.5G handsets that we have today." Obermann was quick to second this viewpoint, stating that from T-Mobile's perspective "We cannot disappoint our customers by introducing handsets that are inferior in features and price."

In a bid to be positive however, the Vodafone chief pointed out that the mobile industry is usually guilty of underestimating its own strength. "We have constantly undercalled the growth in this industry" he said "We're a business in transition. Only 20% of all voice minutes carried in telecom are carried by mobile phones . . . Many, many, many more minutes are going to move from fixed lines to the mobile side." That, at least bought a smile to most people's lips.

 

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