Customer apathy makes Virgin shy of 3G

[Ben]

http://www.guardian.co.uk/business/s...441323,00.html

Richard Wray
Saturday March 19, 2005
The Guardian

Virgin Mobile has cooled on the idea of 3G services, pulling back from a major launch because of a perceived lack of interest among British mobile phone users in the new technology.
Richard Branson's mobile phone company was involved in the government's auction of space on the 3G spectrum back in the heady days of the dotcom boom but pulled out as prices soared over £1bn.

The first four UK networks - O2, Orange, T-Mobile and Vodafone - with the new entrant 3, spent £22.5bn on licences to run 3G services.

The launch of 3G in Britain, however, has suffered delays through technical problems and a lack of handsets.
Virgin uses the T-Mobile network to run its service and as part of that deal it has the ability to offer 3G services such as video-calling and fast music downloading. It offers one compatible handset - Nokia's 6630 - but its 3G capabilities are disabled.

Virgin, which expected to launch 3G in the summer, thinks it still lacks the services that will make it compelling for consumers. A spokesman said Virgin would carry out a "phased, pragmatic and profitable" roll-out rather than a major launch.

As Virgin does not own a network, holding off on a full-scale 3G launch will have no financial impact but it will add to growing unease in the industry that the new technology is a damp squib.

Vodafone, which launched with a big splash just before Christmas, is thought to have signed up fewer than 200,000 customers for its Vodafone Live with 3G.

To whet appetites, Orange is offering two phones for one, while 3, which was first to market two years ago, has only seen significant take-up in the past year, generated by cheap phone calls and texts.

T-Mobile's will not launch until later this year and while O2 has 3G handsets in stores, its push will come at the end of the year, when it will offer services based on Japan's i-mode technology.