In the first of a fortnightly series, Antony Savvas uncovers the
technology and management issues behind the big telecoms and
network stories of the day
If you're not a shareholder, you probably won't have taken much
notice of Vodafone's latest results. But you really should do so,
and here's why.
As Vodafone is the biggest mobile operator globally, the rise in
its contract customers could be seen as a useful measure of whether
companies are really doing much in the mobile data sector to boost
efficiency and sales.
Unfortunately, the amount of money that Vodafone is making from
Internet-related data is pitiful - only 1.1% of sales - and even
this figure went down slightly compared with the corresponding
financial period.
Internet-related data includes Web sites, databases, e-mail
accounts and other applications downloaded using a mobile phone as
a "bearer" modem in conjunction with a laptop or personal digital
assistant (PDA).
So why are users holding back from making the most of Vodafone's 3G
and GPRS networks? A key factor could be that unlike GSM systems
which allowed users to download Internet-related data onto their
laptops and pay for the service by the minute, BT Cellnet and
Vodafone have introduced GPRS tariffs based not on time connected
but by the amount of data downloaded and sent.
This has undoubtedly spooked some users who rightly feel that they
can predict how long they need to be connected to the network, but
are unable to budget in advance for the amount of data to be
received or sent.
Certainly the operators deserve a premium for their GPRS services
which are twice to
 | | "If they haven't learnt the
lessons from low take-up of GPRS so far, the step to 3G will be
even steeper than first thought" | | | | | |
| | Antony Savvas | | |
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four times faster than traditional GSM networks. But companies need
to plan for cost on a monthly basis and total data downloads by
large numbers of staff are very hard to work out.
GPRS is here to stay no matter how little the operators are
currently making from it, but given the small uptake so far by
their commercial rivals, many companies will be wondering whether
they need to worry about even faster 3G services.
Vodafone maintains that more data will be sent over GPRS networks
in the near future with the arrival of GPRS phones equipped with
multimedia messaging service (MMS). MMS allows quicker access to
e-mail (without using a laptop or PDA), moving graphics, and music.
But here's the catch: Vodafone and the other operators still seem
to be adamant that such data should be charged by its size rather
than the time it takes to download it.
If they haven't learnt the lessons from low take-up of GPRS so far,
the step to 3G will be even steeper than first thought, and
companies wondering on whether they will be missing out on
something big by not now planning for 3G will probably be few and
far between.
Billing issues must be resolved before suppliers can expect
customers to be happy to use next-generation mobile Internet
services. Without a simple and fair paying scheme, users should
steer clear of this technology.
What do you think?
Does the pay-by-volume approach put
you off GPRS and
3G?>
Let us know with an e-mail.>>CW360.com reserves the right to edit and publish answers on
the Web site. Please state if your answer is not for
publication
Antony Savvas is an independent observer and commentator on the
telecoms and IT industries.