Vodafone 3G arrives in Spain and Italy

May 25, 2004

Vodafone has launched its 3G mobile phone services in Spain and Italy. The company started 3G videophones in Germany and Portugal earlier this month but is expecting significant take-up to begin around the summer and autumn.

The launch in Spain comes one day after Telefonica Moviles started sales of 3G mobile phones in Madrid and Barcelona. Telefonica will try to attract customers with the Sony Ericsson Z1010 and Motorola A835. Both handsets are priced at 499 euros. Vodafone will provide 3G in the largest 22 cities in Spain and said it will initially be selling Samsung's Z105 handset (599 euros) with Sony Ericsson's Z1010 to follow later.

Italian's TIM announced its commercial 3G operation yesterday with the Sony Ericsson Z1010 and the Samsung Z105 in its handset range. 3 Italia has been selling 3G handsets since March of last year and has 453,000 customers after one year of service.

Vodafone reported earlier its profit before tax, goodwill and exceptional items for the year to March 31, was £10 billion. Revenue rose by 10% higher to £33.6 billion, but the market was disappointed and had hoped the company would exceed forecasts.

The Japanese unit of Vodafone managed to clinch less than 1% of 3G customers by March 2004. Vodafone has offered £2.6 billion pounds for the rest of its Japanese unit, Vodafone KK, and is hoping full control of the business will help reverse declines in profit and customer spending.