Qualcomm and Teleepoch Enter Into a 3G CDMA Subscriber Unit License Agreement, October 6, 2007

MTN chooses Cambridge Broadband Networks for multi-service wireless network in Rwanda, October 6, 2007

Brazilian government to publish 3G bidding rules soon, October 6, 2007

KTF 3G service suffers from technical problems, October 6, 2007

Argentina’s Personal lunches 3G service in Rosario, October 6, 2007

Russia has it's first 3G network, October 6, 2007

AT&T could drop Alcatel-Lucent as 3G mobile network supplier, October 6, 2007

Enea Extends License Agreement with ZTE for 3G Handsets, October 2, 2007

LG to unveil premium handsets in Brazil, October 2, 2007

KTF 3G subscribers doubled in less than 3 months, October 2, 2007

3G policy in India will be non-uniform, October 2, 2007

- previous news

3 more value for money than Vodafone

November 28, 2004

Now that the UK has two commercial 3G services in operation, consumers have an extra choice for the latest video and high-speed data services. Vodafone's recent launch was a welcomed boost for the telecom industry with the world's largest mobile operator officially offering 3G services.

3UK is attracting customers with its heavily subsidised handsets and cheap voice calls. So how does Vodafone's prices and packages compare to 3?

Vodafone has two sets of monthly price plans. The first set is the same as the plans for its current GSM service while the second set is tailored for the company's live! 3G service.

Low end tariffs - 'Anytime 30', 'Anytime 100' and 'Evening & Weekend 1000'

The 'Anytime 30', 'Anytime 100' and 'Evening & Weekend 1000' tariffs are for economical users, priced at £15, £22 and £20 a month respectively. The cost of handsets when signing up to one of these tariffs is between £70 to £250 depending on the handset.

On 3, the cost of a handset ranges from free to £350, depending on the handset, when signing up to 'Videotalk 100' at £15 a month.

Both 'Videotalk 100' and 'Anytime 100' offer 100 cross network minutes per month but 'Videotalk 100' is £7 cheaper per month. 'Videotalk 100' is also the same price as 'Anytime 30', which offers 70 less minutes than 'Videotalk 100'.

The 'Evening & Weekend' tariff should only be considered when users make a majority of their calls in the evenings and weekends to Vodafone mobiles and UK landlines.

Verdict: 3 wins with 'Videotalk 100' and Vodafone wins with 'Evening & Weekend' because it is suited for off-peak users

Medium tariff - 'Anytime 200'

Vodafone's 'Anytime 200' includes 200 cross network minutes a month and priced at £30. Handset costs for this tariff ranges from £30 to £150. With 3, customers can get 500 cross network minutes using 'Videotalk 500' for £25, £5 less than 'Anytime 200' while offering 300 more minutes. Handset prices for 'Videotalk 500' is between free and £150.

Verdict: 3 wins with 'Videotalk 500'

High end tariffs - 'Anytime 400' and 'Anytime 1000'

Vodafone's high-end prices show even less value for money compared with 3. 'Anytime 400', £50 a month, costs £25 more and has 100 less minutes than 'Videotalk 500'. Its 'Anytime 1000' for £75 a month has the same amount of minutes as 3's 'Videotalk 1000' but is £15 more expensive and does not include as many extras. Handset prices for 'Videotalk 1000' and 'Anytime 1000' is from free to £50.

Verdict: 3 wins with 'Videotalk 500' and 'Videotalk 1000'

3G Plans - '3G Exclusive 500' and '3G Exclusive 1000'

Only when you compare Vodafone's second set of tariffs, Vodafone live! exclusive 3G plans, does the tariffs become more favourable. Vodafone has two tariffs for its exclusive 3G plans, 500 minutes for £40 and 1000 minutes for £60. The tariffs also includes £12 worth of text, video, picture messages, and 50 minutes of video calling. In addition it includes free access to football, film and news worth £11 a month.

3 has 'Talk + Text 900' for £40, consisting of 750 minutes and 150 texts. Apart from these, the tariff has no other extras. Vodafone's '3G Exclusive 500' has 250 minutes less and also 50 text less, i.e. £12 worth of text is equivalent to 100 text. It has however 50 video calling minutes and extras worth £11 pounds. Despite less minutes, the '3G Exclusive 500' is worth signing up to because of the video calling minutes, extras and also that the £12 of messaging is not limited to text but can be used for picture and video.

3's 'Videotalk 1000' is similar to Vodafone's '3G Exclusive 1000', both priced at £60 and offer 1000 voice minutes and 50 video calling minutes. Where as '3G Exclusive 1000' includes £12 of messaging, 'Videotalk 1000' includes 150 text, 50 picture messages and 50 video messages, worth over £50. In addition, 'Videotalk 1000' contains £20 worth of content on 3's portal.

Verdict: Vodafone wins the £40 category with '3G Exclusive 500' because it offers more variety. 3 wins the £60 category with 'Videotalk 1000'

Content packages

Both 3 and Vodafone offer similar content, football, music, news and film trailers.

Vodafone customers can subscribe to the film section for £3 per month which allows unlimited access to previews and trailers of the latest movies. Again for £3 per month, customers can access stories and video bulletins from ITN News. Find & Seek, which lets users find directions and maps, cost £2.50 a month for unlimited access. Slightly more expensive at £5 a month, customers can have unlimited access to Barclays Premiership and sports video services.

3's Sport add-on, costing £5 a month, offers unlimited access to the sport section and also Premiership highlights. The £10 a month Video Value add-on allows unlimited access to 3's video & text content, including entertainment, maps, directions, ITN news and also the sport section. Plus it includes 20 video calling minutes and 20 video messages a month.

Verdict: 3 wins with the all in one Video Value add-on

Handsets

Handset prices vary according to the monthly tariff the customer signs up to. Of the three handsets released so far by Vodafone, only the Motorola E1000 will be coming out from 3. It's difficult comparing the prices of the other handsets since they vary in functions and specifications.

On Vodafone, the E1000 costs £100 on 'Anytime 100' while on 3 it costs £45 on 'Videotalk 100'.

On Vodafone, the E1000 costs £50 on 'Anytime 200' while on 3 it's free on 'Videotalk 500'.

The E1000 is free on 'Anytime 1000' and 'Videotalk 1000'. Surprisingly, the E1000 rises back up to £100 on Vodafone's 3G Exclusive plans despite the £40 and £60 monthly price tag.

Consumers signing up to the medium and lower end tariffs would enjoy cheaper handsets if they joined 3.

Verdict: 3 wins

Conclusion

The comparisons indicate 3's packages are better value for money. Of all the Vodafone tariffs, only the '3G Exclusive 500' is worth subscribing to because it offers more variety of services, voice minutes, video call minutes, £11 worth of content and £12 of messaging. But the handset prices for this tariff are significantly high, for example the E1000 costs £100. Considering that customers are paying £40 a month, the E1000 should really be free. 3 is offering the handset for free when customers sign up to the 'Videotalk 750' tariff at £35 a month.

Apart from prices, consumers should also consider other aspects. As we have already seen from 3, bad mobile phone coverage and poor customer service have lead to complains and unsatisfied users. Vodafone has around 50% 3G coverage in the UK so users may not be always able to browse the live! portal and make video calls but they will expect to be able to receive and make voice calls. The network is expected to suffer from drop calls over the next few months and therefore the service may not run smoothly.

It's difficult to say which operator has the better coverage so consumers will have to decide which operator offers the best handsets, packages and services. On 3, unused voice call minutes cannot be carried over to the next month whereas on Vodafone it can. Therefore customers won't feel like they have wasted money when they have used only a small amount of the included minutes. Last year, customers on 3 were unable to make much use of their 500 or so minutes because of drop calls and also because the numbers they were trying to call could not always be connected.

Vodafone's video calls cost 35p for calling Vodafone videophones and 55p to other networks while 3 costs 50p to any network.

3 currently offers more handsets than Vodafone since it has been in operation for longer and its cheap and medium range handsets are normally free when signing up to the 'Videotalk 500'. The operator also has prepaid handsets for under £50 that includes £15 worth of calls. Vodafone is launching more handsets in the next few months, giving more choice for consumers.

Will Vodafone be able to lure 3 customers to switch sides and also tempt non-3G users in the UK to sign-up?

Vodafone is unlikely to sway 3 customers because both operators offer similar content and Vodafone is pricier. But because of its presence and reputation in the UK, Vodafone can tempt non-3G users, especially its exist customers, to try out 3G.