Vodafone's delivery of a third-generation (3G) data card to its largest corporate customers in the UK may not seem like such a big deal. But as the first example of a service designed specifically to carry data over cellular networks at much higher speeds than GSM or GPRS, it will attract close scrutiny from rival mobile operators and others.
While video telephony, gaming and other consumer applications may get the 3G headlines, the applications that are guaranteed to provide operators and handset makers with a steady source of income are those that are already used most widely on existing mobile networks. In other words, the requirements are for email and remote access to business databases, and to a lesser extent internet browsing - though browsing has been vastly constrained by the low bandwidth that GSM and GPRS have so far delivered.
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Although Vodafone says that Mobile Connect users can expect data rates of up to 384kbit/s, this figure is actually a theoretical maximum based on the limitations of the Wideband Code Division Multiple Access (WCDMA) technology on which 3G networks are built.
In everyday use, analysts say that speeds of 64kbit/s are far more likely - still equivalent to ISDN and faster than the 42kbit/s to 43kbit/s currently offered by analogue dial-up connections - and more than enough bandwidth to make browsing standard HTML web pages through a mobile phone a plausible reality.
Vodafone's move also appears to back the widely held view that problems with 3G network capacity and performance have been largely resolved. But that said, the gradual rollout of the Mobile Connect service - it will be initially available only in London and the M4 corridor and only to a certain number of customers - suggests caution. Vodafone is obviously anxious not to overload the network, and is being careful until it has a better idea of how it is likely to cope with the predicted traffic.
More significantly, Vodafone appears to have no plans to launch either voice or video services for at least another six to 12 months. Presumably it has learnt its lesson from rival 3G operator 3, which has been inundated with complaints about limited coverage, poor performance and low-quality handsets ever since its 3G services first started in 2003.
Instead, Vodafone will do what O2, T-Mobile and Orange have also said they will do, namely wait until there are a large numbers of tri-mode GSM/GPRS/3G handsets available - this is generally expected towards the end of next year.
LG Electronics recently announced three more handsets to join those already on offer from Nokia, Motorola and NEC, among others.
With 3 having failed to meets its admittedly optimistic target of one million subscribers by the end of 2003, all eyes are now on Vodafone to see if it can avoid the same coverage and performance problems that dogged the Hutchison Whampoa subsidiary.
Vodafone's cautious step forward indicates that this carrier, at least, has carefully worked out its marketing and operational strategy in advance, and will not make the same mistakes.
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