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Orange UK to challenge Three

May 10, 2003

The UK mobile operator Orange has revealed that it will be spending £10 million on a promotion of its e-mail and data services to challenge Three's high speed 3G data services. The company, which is owned by France Telecom, is hoping to double the number of its UK data users on its 2.5G GPRS to around two million by launching a campaign to educate its customers about the benefits of wireless internet services. Orange says it wants data services to be contributing a quarter of its revenues by 2005, up from 12% currently. The operator is introducing a new tariff for its picture messaging services, charging £4 a month for unlimited use.

Three is currently offering free online content and email access until the end of June to lure customers into signing-up.

According to David Taylor, Orange's vice president of customer marketing: "Our customers aren't getting the most out of their phones." The company estimates that as many as 80% of its customers are only using one-tenth of their phones' capabilities, ignoring the wealth of data services which are available to them. Taylor adds: "Mobile services aren't useful unless people know how to use them."

Orange UK will be hoping to offer 3G services by the end of 2003. Inside information said if Orange miss the launch date the company will just switch to a backup plan, known as EDGE, this technology support data rates of up to 384kbps and will be able to support MMS. Orange have formerly EDGE in place and can be switched on quickly.

 


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