O2 to Hold Off on 3G?

September 27, 2004 - source: BWCS

UK mobile operator O2 is considering shelving its 3G plans until after the Christmas sales period. According to reports in the UK press this morning, some of the top brass at the former mobile wing of BT do not believe the technology is ready for mass consumer services.

O2's network chief Dave McGlade, was quoted by the Guardian newspaper this morning promising that his company would not push ahead with its 3G plans unless it could ensure that customers will not be disappointed with the service. Clearly O2 has its own agenda in casting such aspersions. Barely one week ago arch-rival Vodafone announced it would launch no fewer than ten 3G handsets aimed at the consumer market in the weeks leading up to Christmas.

BWCS understands that O2 executives will meet next month to reach a final decision over a pre-Christmas 3G launch. However, it is understood that it is increasingly likely to be postponed until 2005. O2 head, Peter Erskine has made no secret of the fact that he does not expect widespread adoption of 3G services to materialise until the end of 2005.

Fellow UK mobile outfit Orange is understood to be on track with its plans to set up a UMTS network covering two thirds of the UK population by the end of this year. Yet the France Telecom owned operator is also of the opinion that mass marketing of its 3G services should be delayed until next year.

As McGlade put it, the mobile industry "Has a track record of hyping technology before it is ready." He went on "O2 understands that in mobile it is not about being first to market but delivering on customer service promises." According to the Guardian the fear that is stalking the corridors at O2 is that an early launch of 3G could bring back too many memories of its WAP fiasco when eager marketing execs touted the slogan "Surf the net, Surf the BT Cellnet" much to the company's later shame as it emerged that the WAP experience fell far short of internet-savvy consumer's expectations.