3 UK sets modest broadband target

Ian Channing — Wed, 17 Jun 2009 12:02:02 -0400

The British Government has published a report outlining its plans to deliver 2Mbit/s broadband to all UK citizens by 2012.

This is hardly an ambitious goal given that countries such as South Korea are already providing broadband at speeds up to 100Mbit/s. A mixture of technologies will be used to achieve the Government's goal, with mobile playing a key role.

However, there are issues concerning the spectrum allocations for mobile operators which will have to be addressed if mobile is to play its part in the broadband project. The main stumbling block is the question of spectrum refarming. The report says the Government will have ‘an independently produced guiding technical arbitration on the timing and cost of 900MHz refarming' by the end of September this year.

At present only Vodafone UK and O2 utilise this spectrum which is faster and more robust in terms of delivering mobile broadband, than the 1800MHz spectrum used by the other UK operator Orange, T-Mobile and 2. The refarming of the 800MHz spectrum, which will be freed up with the switch from analogue to digital television, will happen too late for the three 1800MHz operators to help in driving the Government's broadband plans.

There are also issues concerning the long-overdue 4G spectrum auction which the report does not address. Something positive did come out of the report for UK mobile operators, it confirms that they can all keep their licences indefinitely which should allow more certainty with regard to future investment in their networks.

For more on this story:
- go to Mobile News and Silicon.com

3UK sets new mobile email benchmark -- unlimited usage

Paul Rasmussen — Fri, 05 Sep 2008 13:29:31 -0400

Being the smallest player in the UK market has forced 3UK to look for routes to market that might catcher the bigger, and slower moving, competition off-guard. Its latest effort is to use its success with mobile broadband -- it has attracted 500,000 subscribers so far -- to launch a tariff especially for unlimited email use.

In fact there are two data bundle tariffs -- one for 'simple' email (€3 per month for 10MB) and the other for using Exchange or Notes access (€6 per month for 1GB). However, the email access is completely unlimited and includes attachments, and those on the lower tariff will have unlimited POP3 and IMAP access, while those paying €6 will also get uncapped access to their own Exchange or Notes servers.

This packaging is more likely to appeal to handset users as against those with laptops equipped with a 3G dongle -- the latter being the majority of those that have signed for the 3UK mobile broadband deal.

For more on this story:
- go to The Register

Related articles:
Forecast: Mobile messaging spending to $88B by 2012. Report
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3 reaches mobile broadband milestone

Paul Rasmussen — Fri, 25 Jul 2008 11:38:09 -0400

3G-only mobile operator 3 has signed up one million mobile broadband customers in its territories across Europe. The company says that since it launched its service in 2007 it has seen phenomenal growth from customers who are using the mobile service both to supplement and replace their fixed line broadband services. Despite the success of its mobile broadband service 3 expressed concern at the continuing high cost of data roaming in Europe. "Typical retail roaming prices are literally hundreds of times what customers expect to pay domestically. A European consumer might pay around one Euro cent per megabyte at home, yet pay a premium of 360-times that simply to cross a border," commented Christian Salbaing, Managing Director European Telecoms at Hutchison Whampoa. Salbaing urged the European Commission to take action to bring clarity and value to data roaming in the same way it had with voice roaming in 2007. 3 allows its customers to use their domestic price plans when roaming on to its sister networks in Europe, enabling them to access the Internet for a fraction of a Euro cent. As a result data roaming volumes on 3's European networks have increased by 2500 per cent over the last twelve months.

For more on this story:
- go to 3g.co.uk and Mobile Europe

Related story:
3UK aims to double its subscriber base by 2012. Article

Ofcom ruling to hit 3UK revenues hard

Thu, 22 May 2008 06:59:56 -0400

Despite arguing that a decision forcing 3UK to cut its termination charges would severely damage its future revenues, the U.K. regulator Ofcom has stated that the operator must reduce the costs it imposes on rival companies to connect phone calls to its network by a hard-hitting 45 per cent.

Earlier this year, the owners of 3UK, Hutchison Whampoa, said that it's money-draining 3G unit finally achieved its cash flow target and that, "barring any further unfavourable regulatory or market developments, 3UK would turn a new page in 2008 on a path to achieve positive monthly EBIT on a sustainable basis in the second half of 2008 and full year positive EBIT in 2009."

Regardless, the Competition Appeal Tribunal that heard 3UK's viewpoint noted that mobile operators had traditionally set the rates at levels 'much higher' than the costs of connecting calls to their networks. It said the operators had used some of the income to subsidise deals they offered customers.

For more on this story:
-read Telecoms.com and Telegeography

Related stories:
3UK loses number portability legal battle. 3UK story
FUD surrounds new U.K. 3G spectrum auction. Spectrum auction

Voda first in U.K. with unlimited (nearly) data tariff

Mon, 05 May 2008 06:59:54 -0400

Vodafone U.K. is offering unlimited Internet access as a standard feature of its new monthly mobile price plans, driven by an increasing demand from its subscribers to access social networking sites and emails from their cell phones.

The company claims it is the first operator in the U.K. to offer an unlimited monthly tariff, although O2 might well argue its iPhone offer has provided this service since it was launched last year. Also, the 'unlimited' package from Vodafone does have a fair usage limit of 500Mb per month.

Vodafone said Internet access would be automatically bundled in with all its new pay plans for no extra charge, with prices starting from £25 per month. Until now customers had to buy an additional Internet bundle for £7.50, with a cap of 120Mb per month.

Separately, 3 has lodged a complaint with the U.K. Advertising Standards Authority about the claims that Vodafone is making for its mobile broadband connection speeds. Vodafone's advertising material states that it can provide connections up to 7.2Mbps--a speed, according to 3, that is only available in limited areas, such as London.

For more on this story:
- read Times Online and Tech Watch

Related stories:
Vodafone, MySpace more than just friends. Vodafone story
Vodafone hires Pieter Knook to lead new Internet services function. Vodafone story

Back to basics for 3UK--focus now on email, VoIP and IM

Thu, 10 Apr 2008 06:59:58 -0400

Having been a pioneer of new mobile services, the CEO of 3UK, Kevin Russell, has reset the company's business objectives by stating there will be less emphasis on developing mobile content, and a greater focus on promoting mobile email, VoIP and IM services.

While admitting that mobile broadband has a very important role to play and presents a huge opportunity for mobile operators, Russell maintains that he does not support the view held by many in the mobile industry that mobile broadband will overtake fixed services. "I don't believe mobile broadband is as good as fixed, and I'm not going to bang a drum and say mobile will replace fixed."

However, the company admitted that data throughput on its network increased sevenfold from October '07 to February '08, and mobile broadband would be a focus area. "But there are some bandwagons 3 is not big enough to jump on", Russell added. "We need to be a more focused company and not get distracted by services such as mobile TV." He also noted that the company would continue to follow an own-brand handsets strategy, as this enabled it to offer more disruptive services such as Skype.

For more on this story:
- read ZDnet UK

3 looks to profitability in 2008, at long last

Mon, 31 Mar 2008 07:59:58 -0400

Having said to have racked up losses of US$16 billion since it started its 3G operations in 2002, Hutchison Whampoa has reported that its 3 cellphone business has for the first time recorded positive core earnings.

Hutchison reported that the 3 Group, including 3G mobile operations in Italy, the U.K., Ireland, Australia, Austria, Sweden and Denmark, saw 2007 losses narrow before interest and tax to HK$17.94bn (€1.46 billion) from HK$20 billion a year earlier.

However, the group wrote HK$4.6 billion off the cost of acquiring customers from which it no longer expects a return. The U.K. and Italian businesses also made a HK$3.28 billion provision related to regulatory disputes.

"Barring any unfavourable regulatory or market developments, 3 Group will turn a new page in 2008," said Li Ka-shing, Hutchison chairman; he added that Hutchison's Italian 3G arm, 3 Italia, frequently receives expressions of interest from potential buyers--and, while not identifying which companies, noted it would consider selling the unit if the price was right.

For more on this story:
- read The Telegraph and the Financial Times

3UK loses number portability legal battle

Thu, 24 Jan 2008 06:59:56 -0500

Having conducted a high-profile legal campaign against the U.K.'s four major mobile operators over their market dominance, 3UK now faces a £1 million legal bill following the case being dismissed. The company had attempted to force O2, Vodafone, T-Mobile and Orange to hand over hundreds of thousands of documents stretching back over four years relating to their claimed reluctance to provide timely number portability details.

The case, had it gone ahead, would have been the largest of its type and could have resulted in the four operators being hit with a £250 million competition claim from 3UK. However, the judge ruled that 3UK's claim was unfocused and the scale of the requested disclosure was too large. The company has yet to decide whether to press ahead and issue a claim.

3UK maintained that the four networks were keen to change and speed up the number portability system until it entered the market in 2004, at which point they tried to block changes in order to protect their market share.

On a more positive note, 3UK has announced its first MVNO agreement with fixed-line provider Gamma Telecom to boost its reach into the SME market. The company said it was in discussions with other potential MVNO partners, both business and consumer, and is looking to sign up to three more by the end of the year.

For more on this story:
- read The Times, The Register and Mobile News

FUD surrounds new U.K. 3G spectrum auction

Mon, 07 Jan 2008 04:00:00 -0500

The PR departments of mobile operators and MVNOs within the U.K. are working overtime to ensure that the regulator, Oftel, is correctly briefed as to the dire consequences of the planned 3G spectrum auctions favouring particular groups.

The telecom watchdog's plan would allow the four major mobile operators--Vodafone, Orange, O2 and T-Mobile to use their existing 2G spectrum for 3G services. This has caused controversy because they are restricted from offering 3G services to their customers on spectrum that was allocated for 2G services.

The FUD (fear, uncertainty and doubt) being spread by the established players is being mainly aimed at newcomers like Google Mobile who could bid for 3G spectrum. However, the upstart operator, 3UK, claims that it would be unfair if Ofcom allows the four major UK operators to use the spectrum allotted for 2G services to provide 3G services, since 3 has already paid a huge amount to procure a 3G license. The company suggests the splitting of the spectrum into five parts to ensure equal competition. 3 is also trying to insert a clause into the statement, asking the traditional operators to pay for any 2G spectrum that they use to provide 3G services.

Adding spice to this war of words is Oftel's view that the spectrum auction is not limited to mobile 3G but can also include other wireless broadband services such as WiMAX--something the established operators want to avoid.

For more on this story:
- The Times and CBRonline

3 continues to expand Mobile Skype coverage

Thu, 20 Dec 2007 04:00:00 -0500

While Skype may have lost some of its early luster--especially for eBay shareholders, the mobile operator 3 continues to push forward with the concept by launching the Mobile VoIP service in Sweden, Denmark and Austria. The company is now providing the service in eight countries in total.

3 said that the mobile VoIP handset was a full-featured device that enabled subscribers to make free Internet calls using the Skype application, as well as making conventional calls and being able to access 3's existing range of Internet services. The company said that the most popular call destination for U.K. mobile Skype users was Europe followed by the U.S., with the top destinations being Poland, Germany and France.

Kevin Russell, CEO 3 U.K., commented, "Our customers are now able to enjoy the same Skype experience at home as on the move. The rollout across our international business underlines our commitment to offer innovative services that challenge the status quo."

For more on this story:
- read PocketLint, 3G.UK and MobileEurope