Peter Erskine CEO of mmO2

mmO2 has struck another first in the development of higher speed mobile data services in Europe with publication today of trial prices for its third generation (3G) service on the Isle of Man.

Today's announcement follows the successful launch of Europe's first live, working 3G network at the end of last year by Manx Telecom, a wholly owned subsidiary of mmO2. The company has successfully tested 3G handsets and devices, a range of applications, content and connectivity with customers, and now - with introduction of an initial pricing structure - seeks to gain invaluable feedback on elasticity of demand against price. The results will be shared in detail throughout all mmO2's in-country operations.

Four tariffs have been developed aimed at corporations, small and medium-sized companies, consumers and heavy users of the Internet. Charges, which are subject to change as the trial progresses, are based on a monthly subscription and free data allowance. If this allowance is exceeded, customers are informed and an additional charge will be levied.

Typically, a residential customer wishing to surf the Web, download music, play games, send and retrieve multimedia emails from a 3G handset or device will be charged around £1.40 per day, or £44 per month. Business customers can expect to pay just over £80 per month and small and medium companies between £60 and £70. Those customers who only access Manx Telecom's 3G WAP Portal, called Prontonet, are likely to spend around £9 per month.

Manx Telecom's 3G service gives customers high-speed, always-on mobile access to the Internet and a range of highly personalised content and interactive applications as well as video clips and games such as Quake 3. It signals the next phase in mmO2's strategy, building on the growing uptake of GPRS medium speed mobile data services this year and next towards the roll-out of higher speed 3G services, expected from 2003.

Mark Briers, director of 3G, mmO2, said: "The aim of the 3G trial is to find out what customers want and how much they are willing to pay for the various services. We have an initial pricing structure, but will be testing a number of pricing strategies during the trial in order to look at price elasticities.

"This is the leading trial in Europe and one of the world's most advanced high speed mobile data networks. We will therefore have some of the first evidence in the world of what customers want from 3G services, giving us a significant advantage in gaining feedback before we move to a wider roll out."

Other key findings that mmO2 will look to establish, include; customer acceptance of pricing methodologies, usage patterns, impact on average revenue per user (ARPU) and how different 3G applications are received.