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Warning: 3 to reach critical mass within 12 months - report

September 22, 2003

It's time for Europe's mobile operators to sit up and take notice. Their newest rival, the Hutchison Whampoa-backed 3, is on course to achieving critical subscriber mass by this time next year, according to 3- An Inside Track on its Future Strategy, Baskerville's latest report produced by the Mobile Communications newsletter team.

3 has gained important insights from its first few months offering the region's first commercial 3G service. And while it has had setbacks - poor network functionality and clunky handsets - 3's new strategy presents an unprecedented danger to its rivals.

The time for operators to respond is now. 3 is unfolding a pre-Christmas subscriber-acquisition strategy that could leave rivals with a severe New Years' hangover. Even more cut-throat tariffs plus a range of whizzy new handsets could turn the market dramatically in 3's favour. Attractively bundled packages would also let customers gain crucial experience of multimedia services - leaving the newcomer with the lesser challenge of keeping them loyal.

"The new pricing and accessory options 3 has planned for this year should help the operator offset the negative impact of poor battery life, variable network quality and unappealing handsets", says Shani Raja, editor of the new Executive Briefing.

These product and price improvements, coupled with 3's strong financial position, extensive distribution channels and no-nonsense packages, make the operator a much larger threat to its competitors than is readily acknowleged. And it has time before the others get their own 3G services up and running.

 


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This book discusses 3G services from the view of what is needed for the service to provide value to the user, what is the value proposition for the user, how will money be made out of delivering the service, and discussions on how revenue sharing propositions might work to benefit content providers and network operators. 3G operators should take note of this highly recommended book.

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