Ben's Talk3G Blog

I think we've reached a stage of mass enlightenment where I can say that the iPhone 3GS is quite simply the best mobile phone that money can buy without fear of swift and harsh retribution from ant-apples.

Not because the rivalry between iPhone users and users of other devices/platforms has lessened in anyway. Just because it's true.

If only finding the best mobile network was as clear-cut. Mobile coverage is still so 'thin' that finding the best mobile network is incredibly location sensitive. As we can't roam onto an alternative network when our own one craps out we have to choose very carefully about which one we commit to. Though, thanks to SIM only's (massive?) success, commitment doesn't have to be an issue these days.

(PAYG? Sorry, it's a good idea, and it's popular, but no. Hassle. And often expensive.)

One network, however, has steadfastly refused to continue the buildout of its network, most notably in the region of 3G. Despite the overwhelming consensus that wireless bandwidth will be essential to future offerings.

That network is O2.

Their refusal to roll out sufficient 3G, in fact, has resulted in conflicts with the regulator over the terms of the 3G license, which mandated 80% population coverage within a few years. OFCOM also recently released 3G coverage maps, shaming O2 as the least developed 3G network.

But O2 have never hidden their strategy, so users of their network have been making a choice. For years they shied away from pushing 3G handsets and services and instead concentrated on a strong retentions strategy and text-heavy offerings with an overall focus on the youth market. More recent deviations into music (heavily with their string of concert venues) and 'treats' seem to have bolstered this approach. They also grew their subs via predominantly voice and text based MVNOs like Tesco Mobile.

When you consider that 'mmO2' was, by some way I'd imagine, the least-well-financially-backed mobile operation in the world's most competitive mobile market it's not hard to see why they avoided capital expenditure and instead exploited their existing assets - probably with a view to a sale all along. I believe they had a plan to maximise return for the shareholders, and it was, for the most part, beautifully executed.

A hefty subscriber base and current brand no doubt made them attractive to Telefonica.

What they should never have done is bid for the iPhone.

Sure, the original iPhone was a 2G handset, but right from the start it was known that a 3G version would arrive. The 3G iPhone's massive sales exposed the weaknesses in O2's infrastructure from day one, and every day since their exclusive holding of this magnificent handset has been a complete farce.

It's not like their 2G network was even good enough - I should know, I've spent most of the last 17 months on it!

Now Telefonica have been in the picture for a while, and O2 has more than its fair share of high end data-centric devices, things will improve. They must have so much data usage information now that they should be able to properly target their investments, too. O2 recently announced that they will build out their network next year. For many iPhone customers, however, that will be far too late to make any real difference - there'll be plenty of carrier choice by then, and many of us who switched to O2 for the iPhone feel a little cheated that they've waited so long to start the heavy lifting.

You simply cannot take on such a massive undertaking with such flagrant disregard for the user experience.

Little surprise, then, that O2 did indeed lose exclusivity. O2 seemed prepared to do anything for Apple (including truly unlimited data, after that gaffe at the start when it looked like it'd be massively capped) apart from make capital investment. Some things never change...

After 17 months you'd think my memories of Vodafone's rather solid network would be left in the distant past. Not so. In fact, it has taken just a matter of days to get from O2 back to Vodafone, which would have been my network of choice, since the official iPhone unlocks became available. Finally, it would seem, I can enjoy the optimal iPhone experience.

It's not just me and it's not just Vodafone - it seems many are reaching for the unlock keys and setting their iPhones free on the networks that work best for them. Of course this raises the questions of carrier exclusivity, national roaming, regulation and more. But at the end of the day, I'm just glad my time with O2 is over.

It will be years before all the networks are truly in a position to offer the coverage and speeds that devices like the iPhone will require as our hunger for data-centric services grows. Will the investment be there? Is there the vision and leadership in big business these days to plan ahead more than 10 minutes? Will shareholder short-termism and greed prevail?

From what we've seen so far, I'm pessimistic.