Business users expect free 3G phones

date: 4 September 2000

Almost a third of business users expect to receive a free upgrade of their mobile handsets to next-generation internet phones, according to a survey by the consultancy CMG.

OMG said the prospect of phone operators having to subsidise upgrades threatens their ability to recoup costs.

Third-generation technology will allow mobile handsets to perform simple computing tasks and promise high-speed internet connections and video conferencing.

The costs next-generation operators face already are massive. Vodafone, One2One, Orange, BT Cellnet and TIW paid a total of £22.5bn to the government for the licences to deliver third-generation mobile phone technology from 2002.

Analysts have estimated those five operators might have to spend a further £10bn upgrading their networks to deliver the technology.

The survey of 300 business users in Britain, the Netherlands and Germany found many mobile were dissatisfied with the performance of functions on their present handsets such as email and internet access.

"[They] aren't yet attractive enough for business managers to want to pay extra to upgrade their mobile phones," the survey concluded.

"Surprisingly, 28% expect their service provider to provide the upgrade for nothing. This is bad news for the network providers as it looks as if customers are not yet prepared to help them recoup their costs."

The survey also found only 11% of those interviewed were happy with their current mobile phone operators and only 10% owned handsets capable of sending and receiving emails.

Even so, more than two-thirds of those respondents expect to be using their mobile phones for email by 2003.

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