Miles
13-05-2006, 07:56 AM
3G, the much-hyped mobile phone technology, has been "a complete disaster" for the telecoms industry, according to O2 chief executive Peter Erskine.
His startling admission came as the mobile operator revealed that just 400,000 of its 16.3m UK customers have phones that offer 3G services, such as high-speed video and music downloads.
O2 also confessed that such services would not generate "meaningful revenues" until next year. It had previously told the market that 3G revenues would become meaningful in the first half of this year.
Mr Erskine blamed poor consumer demand on a lack of attractive 3G handsets, saying those currently in the shops were too bulky and ran out of battery faster than conventional mobiles because of their extra power.
"The handsets are the key," said Mr Erskine, pointing to the 3G version of the popular slimline Motorola RAZR which is much bulkier than the original.
Read more (http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2006/05/13/cntelec113.xml&sSheet=/money/2006/05/13/ixcitytop.html)
His startling admission came as the mobile operator revealed that just 400,000 of its 16.3m UK customers have phones that offer 3G services, such as high-speed video and music downloads.
O2 also confessed that such services would not generate "meaningful revenues" until next year. It had previously told the market that 3G revenues would become meaningful in the first half of this year.
Mr Erskine blamed poor consumer demand on a lack of attractive 3G handsets, saying those currently in the shops were too bulky and ran out of battery faster than conventional mobiles because of their extra power.
"The handsets are the key," said Mr Erskine, pointing to the 3G version of the popular slimline Motorola RAZR which is much bulkier than the original.
Read more (http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2006/05/13/cntelec113.xml&sSheet=/money/2006/05/13/ixcitytop.html)