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View Full Version : 02 3G Take-Up 'Modest' - CEO



3GScottishUser
18th May 2005, 10:10 AM
From 3i.co.uk (18/05/2005):

LONDON (AFX) - Peter Erskine, chief executive of UK wireless operator O2 PLC, said demand for third-generation mobile phones had been uninspiring since the launch of the high-speed services back in February.

"As we anticipated, the early take-up (of 3G) has been modest," Erskine told
reporters after the release of solid full-year results.

"We're supremely confident that 3G will be meaningful but we've always said it
won't start until the second half of 2005, becoming material in the first half
of 2006."

Reiterating a previous observation, Erskine said the 3G technology phone
manufacturers had so far delivered was simply not good enough to attract large numbers of customers to the new services.

"Until the 3G handsets are as good as the (current) 2.5G handsets customers will not be interested," he said.

http://www.iii.co.uk/news/?type=afxnews&articleid=5298931&subject=companies&action=article

Hands0n
22nd May 2005, 11:17 AM
Oh! Do O2 do 3G then? They kept that quiet :)

Considering the push that the other 3G players made O2's seems to be a feint whisper by comparison.

"Until the 3G handsets are as good as the (current) 2.5G handsets customers will not be interested," he said.

Well that's sorted out their corporate priorities then. How can you go into a venture hoping to make it a going concern with an attitude like that? What does he mean by "as good as"?

I think that the 3G handsets [generally] do as well as if not better than the 2G counterparts in terms of display area, facilities and functions, and [increasingly] network speed. Of course there are weakneses in the technology at the moment and these are/will improve over time. But I do think that O2 need to go in with a more positive outlook and at least try and market their new technology in the same way that they market their existing offerings.

@NickyColman
22nd May 2005, 12:13 PM
To be honest, i think there is another reason O2 seem to be holding out on a full 3G roll-out! I personally think that within the next year O2 will be bought by either another network or a new entrant to the market! I think this is the reason they are holding out!

3GScottishUser
22nd May 2005, 01:06 PM
I think otherwise. 02 like Vodafone have suddely woken up to the fact that there is a sizable chunk of the mobile market that only want simple handsets and services. Whats the point in spashing out £100's on high tech stuff that many older users for example wont use?

I expect 02 will do what they have been doing very sucessfully to date, exploiting popular services like text. They will move forward for sure, but cautuiosly and who can blame them for that strategy as they watch the pantomine that 3 have produced.

Hands0n
22nd May 2005, 04:55 PM
"Whats the point in spashing out £100's on high tech stuff that many older users for example wont use?"

One of my younger friends (
So, not so much of the "older users" you :)