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Here’s a new voucher code, which can be used when purchasing any 18 or 24 month contract for £30 and over, directly from Vodafone. Enter ‘freecinema’ at the checkout and you’ll receive a cinema booklet containing 12 Cineworld tickets, one for each month of the next year (up to March 2011). The offer will be available until 18th March.

Our most popular phones qualifying for this promotion are the BlackBerry Bold 9700, the new Nokia X6 and the new Sony Ericsson Vivaz, which is available exclusively in ruby red direct from Vodafone.

Compare the deals here

Sony Ericsson’s curvaceous Vivaz is an all round stunner. So is its 8 megapixel camera, which shoots video in HD – just use the dedicated buttons for photo and video. If you want to see everything in widescreen then flip the Vivaz on its side – or plug it straight into your TV. If music’s more your thing, tap the big 3.2″ touchscreen and fire up the impressive music player. The CD cover is there on your screen. FM radio is a tap away. Record a few seconds of a song, and TrackID tells you the artist and title. There’s also a standard headphone socket – so you can use the pair you love. It’s beautiful and functional. An excellent all-round multimedia phone.

The Nokia X6 16GB has an impressive 3.2 inch touchscreen that covers almost the entire front of the phone. It’s pocket and palm friendly measuring 111 x 51 x 13mm and it’s great for watching movies with the 16:9 aspect ratio screen. With 16GB of internal memory there’s plenty of storage too. The X6 runs on Symbian OS v9.4 and has a 434 MHz processor, which is enough to compete with many other smartphones in its class. The new X Series range from Nokia with replace the XpressMusic range, it will focus on entertainment and social networking.

The Blackberry Bold 9700 has the traditional BlackBerry design with a classic QWERTY keypad and 3G connection, a combination that makes it ideal for emailing as well as quick downloads and browsing on-the-go. It has a sensitive trackpad that helps you glide through menus and a decent camera. It’s a great all-rounder.

Terms and conditions: Free cinema voucher available only to new customers purchasing a pay monthly mobile phone contract of £30 per month or above for a minimum duration of 18 months. Offer only available on orders made online and excludes orders of the iPhone.

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Cisco is looking to ramp up recruitment for its Avant Garde range of partner
tools and hopes to sign up 100 extra VARs within two months.

Read Full Story…
(Source Yahoo UK News)

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Why the collapse in online advertising might be leading you to read pretty much anything about Apple’s new gizmo

Hey, have you heard? Apple’s iPad is having production problems! And it’s not having production problems! Also, it’s going to cost £389! Or possibly less, or more. And in the UK the 3G version is going to be exclusively on Vodafone. As well as being on Orange and O2. Also, it’s going to be released in the UK two weeks after the US, where it’s being released on March 26, or actually 29th, except it’s being released at the same time. And it’s going to cost..

OK, enough breathless murmery. Let’s clear the air. There is an astonishing amount of speculation going on about Apple’s iPad. Very little of it seems well-founded – or even grounded in logic.

The facts about the iPad: Apple hasn’t given a precise launch date; “60 days” was the best Steve Jobs had on 27 January. It’s not given one for the UK either. It hasn’t said how much the various models will cost in the UK. It hasn’t said whether the 3G mobile-connected models will be available in the UK (though it’s expected) and it hasn’t said which network(s) it will be going with.

Which is about par for the course for some Apple products. And of course is enough for ever so many “news” stories.

Let’s start with some of the things where people are prepared to put their names to the claims. The Register reports that Vijay Rakesh, an analyst at ThinkEquity analyst, told investors in an advisory note on Thursday that checks with manufacturers suggested “some minor delays” in ramping up production for the tablet. They can only make 200,000 to 250,000 iPads per month at present; production may not hit 800,000 to 1m units per month until at least April.

“We believe this is just a minor hiccup in a longer-term entirely new revenue stream and product road map for [Apple],” Rakesh wrote.

Earlier this week another US analyst, Peter Misek at Canaccord claimed that “unspecified production problems” will hold initial availability to about 300,000 units – and said Apple may keep the iPad to the US only or delay the launch into April.

This was then contradicted by DigiTimes – usually the fount of unspecified vague insights into the Taiwanese and Chinese computer manufacturing insights which turn out to be bang on 50% of the time, and completely off the other 50% – which was told by Foxconn Electronics that everything’s on schedule and that it should be able to ship between 600,000 and 700,000 iPads this month.

Apple said.. nothing. Conclusion: they all could be right. The iPad was announced in January, and if Foxconn has been making 200,000 for a couple of months, it’s got a nice stockpile sitting waiting for a container ship. Meanwhile Foxconn could be ramping up production towards that 800K figure. So we conclude: forecasts of a US-only launch unlikely to come true. And “delays into April”? Remember that at the launch (scroll to 7.22pm) Steve Jobs announced that they Wi-Fi only models would go on sale in 60 days, the 3G models in 90 days because they “require approval from carriers”. 90 days from the iPad launch takes you… into April.

OK. Assume that it is going to launch in the UK at about the same time as in the US. Two questions: how much will it cost? And which networks will the 3G version be available on?

The cost question is interesting. Apple has told us it won’t announce the UK price until it launches at the “end of March”. We’ve done our own calculation (helped by Macworld) which gives us a starting price guess of £424 for the 16GB Wi-Fi only (Macworld suggests £388), ranging up to £705 for the Wi-Fi/3G 64GB model (Macworld: £693).

And which operators? No clues. Obviously, we speak to our contacts there; but so far they’ve had little to offer.

So what then are we to make of the sudden flurry of emails recently from really small sites (and I do mean really small) which claim to know the launch date and/or chosen carrier?

Here’s an example I received recently: “We just got word on Vodafone being the official launch partner of the iPad in the UK, direct from Vodafone. Details in the below blog post. This is from the same guy who provided details that O2 would be the Palm Pre’s UK carrier well before announcement.”

And a link to the site. But we’re not going to link it here. I’ll explain why in a moment.

Then there was the email from another site which said it had the price for the low-end iPad: “We are pretty confident regarding the pricing, the tip came from a source who works closely with Apple UK, obviously we can’t say much more about this.

“We are 99% sure that the base model will be £389, regarding the other prices of the 32GB and 64GB models, our source said that these are likely to be the prices, although he did mention that the prices on the last two aren’t set in stone as yet.”

(I should point out that the other site didn’t approach me; I contacted it to ask how sure they were of their sources.)

Hmm, so have we missed a trick? Are we getting blown out of the water by dedicated bloggers running niche sites who have contacts in just the right places? Perhaps. But consider another possibility. I spoke to someone who has very good contacts in the mobile phone industry.

The reply: “My source at Voda says nothing signed yet but is checking, also it’s kinda weird but [the person quoted in the Vodafone story] left a year ago.”

So why the certainty in that story? My contact noted: “There are going to be more and more stories like this as the collapse in online advertising has pushed sites into e-commerce and they need the links from [the Guardian] to push them up the [search] rankings. There are quite a few mobile phone so-called bloggers already in the UK who are actually little more than affiliate channels for the mobile phone operators. That’s often how they get their stories. Watch the links when you click through, it’s often quite instructive. There is, for instance, a very well respected UK mobile phone blogger who gets a lot of very good Orange scoops. Of course he does, my mates at Orange point out, the other half of his business is a retailer for Orange so he finds out about new phones at the same time as the rest of the channel. Is that journalism? Who knows these days.”

We conclude: the maths suggests that the iPad will very likely come in around the £389-£399 mark (we like the Macworld number better than ours, which by being above £400 isn’t a marketing-friendly price sticker). Networks? Whichever ones can handle the micro-sims that the iPad uses. Given that Apple is still with only one network in the US, but in the UK has signed up three (O2, Orange and Vodafone; Tesco is a virtual MNO), it’s hard to know whether it will try to be a kingmaker again or prefer to spread the love like butter among them all. Rationally, being on all three (while making them think it’s exclusive until it’s announced) would be better for sales – people could just add an iPad plan to their existing contracts.

OK? We hope that puts your minds at rest about prices and operators. As for launch dates… well, Apple traditionally goes with Tuesdays or Fridays. Strictly, 60 days from the iPad announcement puts you on Sunday 28 March, so take your pick: Monday 29th, or Friday 26th? Or might it get pushed further along? As for the 3G version, if there’s a 90-day delay, then you’re not going to see it until April 27 (on the 90-days-from-iPad-ground-zero principle). So even that US analyst could be right.

And remind us what you’d be buying an iPad for? We’re interested to hear.

Read Original Story…
(Source The Guardian)

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Taiwanese mobile-phone manufacturer backing Google’s Android OS is accused of infringing 20 Apple patents

Apple is suing the Taiwanese handset maker HTC, alleging that it has infringed 20 patents relating to “the iPhone’s user interface, underlying architecture and hardware”.

Among the patents that Apple alleges have been infringed are a number relating to touchscreen interfaces – for which the iPhone has become the best-known, though it was not the first, mobile device.

“We can sit by and watch competitors steal our patented inventions, or we can do something about it. We’ve decided to do something about it,” said Steve Jobs, Apple’s chief executive, in a statement. “We think competition is healthy, but competitors should create their own original technology, not steal ours.”

It is thought that a key element that triggered the lawsuit is that in February HTC released handsets which use “pinch-to-zoom” functionality resembling that of the iPhone.

Apple has filed the suit in the US courts in Delaware, Maryland, but also with the US International Trade Commission (ITC), which has the power to halt imports of products. That would stymie HTC and Google, whose free Android mobile operating system is built into a growing number of HTC phones, and has made significant inroads into the burgeoning smartphone market in recent months.

But the move was received with surprise in the technology community. “I don’t fault Apple for acquiring patents. They have to, for defensive purposes, given the current laws,” noted John Siracusa, a journalist at Ars Technica who has followed Apple closely for years. “But using them offensively sucks.”

The use of the ITC could be key for Apple. A recent analysis found that where lawsuits are filed both with US district courts and the ITC, plaintiffs succeed in the latter more often than the former, by 58% to 35%. That means Apple is roughly 50% more likely to win the case with the ITC – and so could block HTC imports of newer handsets.

HTC indicated that it was completely surprised by the case, and had not even received the formal complaint from Apple when the American company announced it publicly.

Apple has submitted more than 700 pages of exhibits relating to its patents to the court in Delaware, Maryland, where it is filing the case. It cites a number of handsets, including the Nexus One handset powered by Google’s Android mobile operating system, and also other handsets which use Microsoft’s Windows Mobile system. HTC has in the past been the largest manufacturer of Windows Mobile handsets – although it has recently shifted its allegiance to Google’s Android, which is free and has captured significant market share since being launched in 2008.

Apple has specified 10 patents in the Delaware filing, and a different 10 in the ITC filing.

The case is thought to be the first in which Apple has taken the first step in suing a rival mobile phone company. Although it has an ongoing patent dispute with Nokia, the Finnish mobile handset maker, the first move there was by Nokia. Apple has since countersued. The case is ongoing.

Read Original Story…
(Source The Guardian)

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It’s been a tough year for Palm. The company is betting everything on its new handsets, the Pre and the Pixi – but with sales not doing as well as expected, the company issued a profit warning yesterday.

To explain what was happening, chairman and chief executive Jon Rubinstein sent out a memo to the company’s staff.

As is typical with these things, it was largely stuffed with corporate speak and coded messages – so I’ve come up with this handy paragraph-by-paragraph translation that might help explain what Palm thinks is going on.

Team,

Hey guys! Whatever I say, don’t forget we’re in this together.

This morning we announced preliminary results for our 2010 third quarter. Since the quarter has not yet closed, it is too soon to offer exact numbers, but we stated that we expect to report revenues for Q3 between $300 and $320 million.

We’re not selling as many phones as we thought we would: sales were flat despite the fact that we started selling handsets with Verizon – America’s second-biggest phone network (with 91m users) – in January.

We were expecting sales to go up. They didn’t. This could be awkward.

We also announced that we expect our revenue for this fiscal year to fall below the guidance we gave to Wall Street, which ranged from $1.6 to $1.8 billion.

Given how sales have gone over so far, we’d probably need to double our sales in the next three months to satisfy our original targets. Let’s be honest, that’s not happening, is it?

As we mentioned in our press release, our softer than expected performance is due to slower than expected customer adoption of our products, which in turn has prompted our U.S. carrier partners to put additional orders on hold for the time being.

People aren’t buying enough of our phones. And networks don’t want to order phones that people aren’t buying.

On a positive note, we expect to exit the quarter with over $500 million in cash on our balance sheet. We’re scheduled to announce our full financial results in March.

(Before we go on, I’m going to sugar the pill. Over the past year or two we’ve been burning through our cash reserves like crazy – having some money in the bank buys us some more time. That’s awesome news!)

I realize this news is difficult to swallow. We made this announcement today to prevent a surprise for Wall Street when we announce quarterly earnings in March.

Yes, it sucks – but the pain you feel today is nothing compared to the pain you would have felt if we’d suddenly announced in a few weeks that we’d missed our targets by 30%.

In the meantime, the entire executive team has been working extremely hard to improve product performance, and have implemented a number of initiatives to increase awareness and drive sales.

We’ve been trying to work out what’s gone wrong…

Dave Whalen and I just returned from a very successful meeting with Verizon Wireless, where they acknowledged that their execution of our launch was below expectations and recommitted to working with us to improve sales.

…and we’ve decided it was Verizon’s fault.

To accelerate sales, we initiated Project JumpStart nearly three weeks ago. Since then, nearly two hundred Palm Brand Ambassadors, supplemented by Palm employees from Sunnyvale, have been training Verizon sales reps across the U.S. on our products.

In fact, we think they’ve done such a bad job that we’re trying to school them so that they actually know what our products do. Plus, we gave it a cool name that implies we’re taking action!

Early results from the stores have already shown improvement on product knowledge and sales week over week. You may have also seen a growing number of Palm ads on billboards, bus shelters, buses, and subway stations—all getting the word out about Palm.

Not many people know we exist – but when they know we exist, we sell a few more handsets. That’s got to be positive, right?

All of these efforts are examples of how we are working to accelerate adoption and grow distribution of webOS. In the next few weeks, your management will work with you to make sure your priorities are laser-focused, primarily on helping to increase sales, improve product quality and differentiate the Palm product experience.

We need to get better at a few things – largely the “making things” part, and then the “selling things” part. Perhaps some of you haven’t been as focused as you need to be (yeah, I’m talking to you).

Our goals are taking longer than expected to achieve, but I am still confident that our talented team has what it takes to get the job done.

I’m not firing anyone… yet.

We’ll schedule an all-hands meeting after our earnings announcement in March, and I’ll be happy to answer your questions.

Give me a few weeks to prepare before asking me anything.

Go team!!!

jon

I secretly watch lots of cheerleader movies.

Read Original Story…
(Source The Guardian)

Tags: 10, 3, all, blog, compare, compared, comparemobiles.com, drive, launches, mobile, Mobile News, mobile phone, mobile phones, mobiles, months, networks, new, palm, phone, phones, sol, station, three, uk

8MHz left fallow after 6 months of faff

Following six months of consultation Ofcom has decided it can’t decide what to do with 8MHz of sub-1GHz spectrum, so will do nothing until after the general election.…

What is your recession sales strategy?

Read Full Story…
(Source The Register)

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The most damning indictment of phone hacking is that it was almost always used to get gossip rather than expose wrong

The fact investigators working for the News of the World hacked into my mobile phone to cut me out of a potential £30,000 celebrity scoop is not surprising. If you swim with sharks you expect the odd puncture wound. The fact this process is so simple, swift and apparently routine is shocking.

I called the Sunday tabloid one bright afternoon with the name of a celebrity chef and tales of famous London nightclubs, glamorous hotels and sexual impropriety. The reporter I spoke to was Clive Goodman. He promised me the Screws would pay the most – but something about his conspiratorial tones turned me towards a more gregarious Sunday Mirror news editor.

The News of the World was not going to let this apparent front page get away. A rapid succession of calls to my mobile followed. These allowed the caller to access my voicemail – I had not set a password. My personal greeting gave them my real name and my place of work while the messages revealed the identity of my then girlfriend, who was the source of the story.

Goodman called me on my work mobile and aggressively demanded the name of the chef’s female acquaintance. I refused.

It was after that that my mobile phone records were hacked. T-Mobile confirmed a bizarre call where someone pretending to be me failed the most basic security question – my date of birth. Despite this, the caller was able to try again just 15 minutes later and, this time being successful, he was given a full rundown of my recent calls. He then tried to hack my partner’s phone records.

Phone hacking in this way was astonishingly easy. A few years ago, it seemed to be the default method of some News of the World reporters to use information gained in this way. While other hacks were busy knocking on neighbours’ doors or visiting relatives found through birth and marriage records, journalists from the Screws instantly had a direct line to make their offers of “a life-changing amount of money”.

The true scandal here is not just the use of such illegal methods. The most damning indictment of this chequebook journalism is the fact it was only very rarely used to find real wrongdoing by the rich and powerful. Blagging your way into someone’s phone records would be morally defendable if there was a genuine and compelling public interest. Journalists rightly enjoy more latitude under the data protection act and human rights laws – if there is a real reason for subterfuge.

The Press Complaints Commission code states: “Engaging in misrepresentation or subterfuge, including by agents or intermediaries, can generally be justified only in the public interest.”

Muckraking has served the public good: by rummaging through the bins of solicitors Benjamin Pell discovered documents showing the then Tory minister Jonathan Aitken had been involved in Saudi arms deals. But how many of the 100 people targeted by the News of the World’s phone hacking will turn out to be rogue arms dealers, corrupt politicians and corporate killers? And how many will be minor celebrities?

The full armoury of investigative reporting – GPS tracking systems and hidden cameras, “lilly-whites” and “honey traps” – was unleashed against footballers, Big Brother contestants and It girls. And now public figures of means can turn to Max Clifford as a form of defence and use “pay as you go” mobiles. So the tabloid hacks turn on less wealthy, less protected victims.

This is an abuse of power by newspapers owned by one of the most powerful media tycoons in the world, Rupert Murdoch. Moreover, the man in charge of the News of the World when this abuse of power was taking place was Andy Coulson. Coulson, we know, jumped ship as the Screws hit the Goodman phone-hacking iceberg and is now captain of spin for the Conservative party as it sails towards power.

This has serious implications. If the Tories win the general election, as predicted, Coulson will be at the very heart of government with an army of civil servants working for him. Yet, by his own admission, when managing a small team of reporters, he was incapable of detecting flagrant criminality on a huge scale.

Read Original Story…
(Source The Guardian)

Tags: 10, 3, all, blog, charges, compare, comparemobiles.com, deal, Deals, email, free, government, HTC, line, mobile, Mobile News, mobile phone, mobile phones, mobiles, months, new, o sim, pay as you go, phone, phones, sim, sol, t-mobile, test, uk, world

Pioneering smartphone manufacturer predicts substantial shortfall in three-month revenue, sparking precipitous drop in its stock as it battles Apple and BlackBerry

The pioneering smartphone manufacturer Palm, originally renowned for its breakthrough Palm Pilot models, saw its shares plummet 17% on a profits warning as it revealed that its sales are struggling in the face of competition from BlackBerrys and Apple iPhones.

Palm conceded todaythat its latest phones, including the critically acclaimed Pre and the cut-price Pixi, have failed to take off as quickly as it had hoped. “­Driving broad consumer adoption of Palm products is taking longer than we anticipated,” said Palm’s chief executive, Jon Rubinstein.

A trading update from the Californian company forecast revenue for the three months to February of $300m-$320m (£195m-£210m), far short of analysts’ predictions of about $425m.

The warning is a serious setback for Palm, which has been fighting an uphill battle to challenge bigger players such as Apple and the Canadian company Research in Motion, which makes the BlackBerry smartphone. By early afternoon on Wall Street, Palm’s shares had slumped by $1.45 to an 11-month low of $6.64.

Although it broke ground early in handheld devices with its Pilot models in the 1990s and later its web-compatible Treo phones, Palm has fallen behind in the race to capture the imagination of ­consumers.

Its Pre phone, released last year, runs on a new operating system called WebOS and incorporates a phone, a GPS system, wireless internet and a slide-out keyboard. It has won several industry awards but has lagged in other areas – for example, few third-party applications are available for the Pre in comparison to the hundreds of thousands written for Apple’s iPhone.

Experts have become increasingly dubious about Palm’s growth prospects. Ehud Gelblum, an analyst at Morgan Stanley, was initially positive but said in a research note that his optimism had waned, blaming Palm’s US network provider: “Verizon has puzzlingly refrained from providing the marketing muscle behind the products that we had expected.”

In the US, Palm has recently launched the budget-model Pixi, priced at $99, in an effort to attract younger customers.

Read Original Story…
(Source The Guardian)

Tags: 10, 3, all, apple, apple iphone, Blackberry, compare, comparemobiles.com, comparison, consumer, growth, iphone, latest, marketing, mobile, Mobile News, mobile phone, mobile phones, mobiles, months, new, palm, phone, phones, released, sol, test, three, uk, update

Orange relied on iPhone to persuade new customers, while T-Mobile dived back into the pre-pay market

Orange and T-Mobile, who are preparing to merge their UK businesses this year, both had a bumper Christmas, but for wildly different reasons. While Orange relied on the iPhone to persuade people to sign-up to long-term contracts, T-Mobile threw caution to the wind and jumped back into the pre-pay market.

But as both companies had to slash prices and offer customers ever more favourable tariffs in order to remain competitive in the cut-throat UK market, they saw margins decline and average revenue per user – a crucial metric for analysts – take a tumble.

In the last three months of 2009, third-placed Orange added 404,000 new customers, while fourth-placed T-Mobile gained 571,000.

Orange’s figures included 266,000 new contract customers, its best ever fourth quarter performance, and four out of every five of those customers signed up to a 24-month deal, suggesting they were either getting an iPhone or another high-end smartphone, such as one running Google’s Android operating system or a Blackberry.

Orange ended O2’s two year exclusive hold on the iPhone in November and sold about 90,000 in the first month.

Orange’s revenues in the fourth quarter were €1.29bn (£1.13bn), down from €1.3bn, including its struggling residential broadband business, which lost 50,000 customers in the quarter and now has just 840,000 users. There has been intense discussion within Orange about closing down the broadband business, selling the customers to a rival ISP, such as BSkyB, but management have decided to hold onto the operation and it is now offering a free 32GB iPhone to customers who sign up for its high-end home broadband package.

Margins at Orange, meanwhile, declined to 18.4%, down 2 points compared with a year ago, while its average revenue per user – across both contract and pre-pay customers – was £21.41 a month in the fourth quarter, down from £24.25 a year ago.

As it does not have the iPhone, T-Mobile, in contrast, put all its focus on attracting new pre-pay users, putting a lot of marketing spend behind its “free texts for life” for any customer topping up by at least £10 a month. In the second half of the year, T-Mobile added 629,000 new pre-pay users, 570,000 in the run-up to Christmas alone.

All but 1,000 of its new customers in the fourth quarter were on pre-pay.

Revenues, however, were down in the quarter to £737m, from £820m a year ago, with margins of 20.1%, down dramatically from 24.8% a year ago.

Average revenue per user (ARPU) was £18 a month, down from £21 a year ago.

In the same period, second-placed Vodafone added 410,000 new customers with ARPU of £20.40, down from £21.5 a year ago, and margins of 23.2%, down from 25.9%. The UK’s largest mobile phone company O2 will report on Friday.

The fact that three of the four largest players in the UK added almost 1.4 million brand new customers means that either O2 and 3 saw subscriber numbers fall off a cliff, or the first quarter of this year will contain a nasty surprise for at least one operator.

It is unlikely that O2 has seen its winning streak come to a complete halt, given O2 boss Matthew Key’s upbeat statements about life since it was forced to give up its exclusive hold on the iPhone first to Orange then Tesco Mobile before Christmas; and then to Vodafone last month.

As a private company, rival 3 does not provide regular figures, but its owner Hutchison Whampoa, which keeps a very close eye on its mobile phone business, would react fast if UK chief executive Kevin Russell had lost hundreds of thousands of customers in the last three months.

For the past few years, 3 has had between 3 and 4 million users and will report financial figures at the end of March.

It is more likely that because of the way in which the mobile phone companies count pre-pay customers as active or inactive that the first quarter of this year will see a balancing of the books. More than half the new customers added in the fourth quarter so far, are pre-pay users and are likely to have switched between pre-pay providers. But while their new network will count them as a new customer from day one – ie in the fourth quarter – the network they are leaving will not count them as inactive until they fail to make a call or send a text within a 90 day period. As a result, they are not likely to have been identified as customers who have defected until sometime in the first quarter of 2010.

Read Original Story…
(Source The Guardian)

Tags: 10, 3, all, android, apple, best, Blackberry, compare, compared, comparemobiles.com, contract, deal, free, google, iphone, largest, line, marketing, mobile, Mobile News, mobile phone, mobile phones, mobiles, months, new, o2, orange, phone, phones, prices, sam, sol, t-mobile, tariff, tariffs, three, uk, vodafone

Adam Elgar hopes a mobile broadband dongle will do for his daughter, who is moving into a house with no fixed line internet access.

My daughter is moving into a house with no fixed line internet access, and she’s sceptical about going down the dongle route with her laptop. Her mobile phone signal will be adequate, but not great. How could she best achieve the bandwith needed for (for example) watching TV online? Your 8 October 2009 answer — Can 3G replace a landline? — suggests that only a landline will do. But are there now other solutions that you’d recommend?
Adam Elgar

I would love to be able to recommend WiMax (IEEE 802.16), which is much like a long-range version of Wi-Fi (IEEE 802.11), but it’s very unlikely that your daughter is living in an area where it’s available. Given the UK government’s/Ofcom’s lack of interest in WiMax, I don’t see that changing. I would also love to be able to recommend LTE (Long Term Evolution), which is the 4G service of choice among phone network suppliers, but it is probably still a couple of years from common use.

Since I can’t do either, I’d suggest your daughter either looks into the cost of a landline or tries to find a friendly neighbour who will share an existing Wi-Fi network. Or, particularly in a rural area, considers two-way satellite services like Astra2Connect.

While I wasn’t very keen on mobile 3G dongles last October, I’m even less keen on them today. I had been using my 3 dongle inside the M25 for email and Twitter but I’ve stopped because it’s often not worth the effort — and 3’s HSPDA seemed to me to be the best service!

Even with a dongle, you’re not connected the whole time, so it’s not really “mobile broadband”: it’s more like “mobile dial-up”. And because of line drops/tunnels/tall buildings/whatever, you can spend more time connecting and disconnecting (and downloading 3’s pointless home page) than you do tweeting. I wouldn’t usually try to watch a YouTube video or iPlayer programme via 3G, though it might be possible.

The actual throughput your daughter will get will depend on exactly where she lives: results can vary on the same street, or even inside the same house. However, I’d be a touch surprised if she got much more than 2.2 Mbps, regardless of the “headline speed”. I wouldn’t be shocked if she got 1 Mbps, or even less. By contrast, a fixed phone line or cable connection should normally be able to deliver 3 Mbps to 7 Mbps for a lower cost. (You would also have to include the cost of installing and renting the phone line, but sometimes this can be shared between four or five people.)

You can perhaps get some idea of the likely performance and the deals on offer by entering your daughter’s post code in the “Speed in my area” page at Broadband Speedchecker. This takes users’ speed test results from the past six months and plots them on a Google map. There are a few pins for mobile broadband services, though it could do with more.

In the end, I’d guess that mobile broadband is now worse than it used to be because many more people are using it. The market has grown with the arrival of better smartphones (BlackBerry, iPhone, Android etc) and the cheaper deals for dongles and bandwidth taken up by mobile netbook and notebook users, me included.

Are the network providers going to expand capacity (which costs money) faster than required by the number of new users? Maybe, but I wouldn’t bank on it.

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(Source The Guardian)

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Several staff require continued care after 47 were treated last year for effects of n-hexane at factory that supplies Nokia

Workers at a Chinese factory that makes parts for mobile phone companies including Nokia have been in hospital for months after being poisoned by a chemical used in production.

The owner of the plant says it stopped using the screen-cleaner n-hexane in August last year after 47 workers were taken ill. But the lingering effects of the chemical have left several requiring continued medical care.

Taiwanese firm Wintek is known for its touch-screen panels for mobiles and owns several factories in mainland China. It is reported to make the iPhone’s touch-screen panels and has been widely touted as a potential supplier of iPad components for Apple.

Nokia said the n-hexane was not used on its production lines but that it had ensured measures were taken to protect workers’ safety at the plant in Suzhou, Jiangsu province.

It is not clear why Wintek started using n-hexane to clean screens instead of alcohol, nor when it did so, although the health problems appear to have surfaced in July. The issue gained attention when 2,000 workers from the factory went on strike last month over a pay dispute and cited lingering anger about the chemical incident.

Deng Yulong, a 19-year-old worker, told Chinese Central Television she became sick soon after starting work at the plant. She suffered from weakness and severe headaches and fainted twice in the factory.

Repeated exposure to the chemical at high concentration can cause nerve damage and muscle weakness, with symptoms in severe cases lasting for as long as two years.

A spokesman for Wintek said that “almost all” of the affected workers were back at work but that some remained in hospital. He could not say how many had recovered.

He said that n-hexane was commonly used in the industry, adding that the problems arose because no prior evaluation of the plant was carried out. Because some areas were not ventilated, the concentration of the chemical built up and poisoned the workers.

The spokesman added that the company had paid the workers’ medical bills and regular wages, topped up with food and nutrition supplements amounting to more than their usual wage.

In a statement, Nokia confirmed the Suzhou factory provided parts for its handsets, but said n-hexane was not used in manufacturing its products or their components.

It said: “We became aware of the allegations regarding the use of n-hexane in July 2009 and started our investigation immediately. Although it was confirmed that the n-hexane was not used on our production lines at the supplier … we agreed on a development plan for health and safety management at Wintek’s Suzhou factory and a series of corrective measures have been taken since then.”

The company added: “Nokia firmly believes that all employees have the right to ethical and legal treatment. The health, safety and wellbeing of our employees are vital to the success of our business.”

It said it expected suppliers to take a similar approach and demonstrate their progress in these areas, working with them to go beyond legal compliance to meet the company’s standards.

A spokesperson for Apple confirmed that the company had received the Guardian’s email queries, but no response was forthcoming despite repeated phone calls. Wintek says it cannot identify its clients and Apple does not normally comment on suppliers.

Chinese media have reported workers’ claims that colleagues died from exposure to the substance, naming one possible fatality, but the local government and Wintek says that no one died of n-hexane poisoning.

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(Source The Guardian)

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Despite Google’s protests, its entry into the mobile phone market will change the game – and makes operators ‘dumb pipes’

Eric Schmidt, the chief executive of Google, tried to reassure operators this week that the search engine’s direct entry into mobile phones through its Android platform was designed to make telcos money, not to turn them into “dumb pipes”.

He told anxious operators at the Mobile World Congress in Barcelona that Google had no intention of building broad infrastructure to compete with the operators. Google’s protests that it is helping others to make money will be taken with a pinch of salt by other businesses such as newspapers and sat-nav operators (who have been undermined by Google’s free alternative) but welcomed by consumers.

Of course Google isn’t going to build a rival infrastructure. It is going to bypass it altogether by using Wi-Fi as it becomes increasingly available and letting users choose which operator they might use in conjunction. A week ago I bought Google’s new Nexus mobile device from its US website as my main phone.

Make no mistake, it is game-changing in two important ways. First, it turns the operators from arbiters of how you can use your phone into the equivalent of finance companies. I paid $529 (£338) for a SIM-free phone. I could have left it at that and just used it at the increasing number of Wi-Fi hotspots around town – but that would deprive me of incoming calls and the ability to use services such as mapping in places where there is no Wi-Fi. So I signed up with O2 for a pay-as-you go Sim plus an “unlimited” data package for a very reasonable £7.50 a month. If that isn’t turning the operator into a “dumb pipe” then I don’t know what is.

Others have offered Sim-free phones in the past. What makes this different is that it comes with Google’s integrated suite of services, giving an easy user experience. One click and my Gmail comes up, another one and the day’s calendar, or Twitter or whatever – appears to fill the ample 3.7in screen.

The game-changing part is the way Google is bringing voice back to the telephone in a way that hasn’t happened before. A few months ago I tried the company’s voice search out by speaking an inquiry instead of typing it in and was amazed that it got it right the first three times. Now, on a more extensive test, while well under 100%, it is highly impressive and I intend to use it as my default method of searching for standard queries. It beats the otherwise impressive Vlingo (on my BlackBerry) for speed and accuracy.

Google could have another killer app in the rollout – starting in the US – of its own internet telephone system for mobiles. When that is seamlessly integrated into all the other features that 150m Gmail users enjoy then Google could become a major international telephone operator in its own right. And if Wi-Fi ever becomes ubiquitous, then the sky’s the limit. All this will provide competition for Skype and the up-and-coming UK based Truphone, which I use for all my long-distance calls via a downloaded web app from my iPod Touch. Truphone has its own killer app that neither Skype nor Google has – you can get through to a real human being when things go wrong. Miracles can happen.

If the existing operators come under siege in a few year’s time as a result of web telephony, then they have only themselves to blame for the often contemptuous way they have treated consumers. Sure, they have, commendably, invested billions in much-needed infrastructure, but that is no excuse for what they have done.

They have made three major errors of business strategy and are about to make a fourth. First, they built walled gardens around their phones – depriving users of the universality of the web. One early Vodafone smartphone didn’t even have Google on it. When I inquired why, I was told there was no demand for it. As a consequence of their walled gardens of selected products they paid pathetic revenue shares to content providers thereby strangling an embryonic industry at birth until Apple resuscitated it. Had they opened their walls and given developers a fair return they could have created an app revolution long before Apple.

Second, by milking their customers for exorbitant amounts every time they used their phones to access websites, they delayed the mobile data revolution by several years. It was only when Apple insisted on adopting a fixed tariff – though it wasn’t the first – that web access from phones soared.

Third, by treating promiscuous customers more favourably than loyal ones they abandoned the basis of trust that all good brands need. And the next mistake? They are pushing for abandonment of “net neutrality” whereby all customers are treated more or less equally. They hope to make more money by giving bandwidth preference to content they get money from. You can imagine how popular that will be if some customers get slow broadband or none at all to make way for other people to watch Sky or Virgin videos.

As a phone, Google’s Nexus is the usual mixture of pluses and minuses. It has got a great 5 megapixel camera as can be seen here and a much better screen resolution than the iPhone, but the touchscreen itself is less reliable. Although it has over 20,000 apps in its store – and growing – they are not yet near the quality of the iPhone’s archive. Surprisingly, I have been very disappointed so far with Google’s mapping which ought to be its biggest strength. On a cloudy country walk it failed to make any connection with a satellite for a longitude/latitude fix and as mobile reception was flaky it didn’t download complete maps.

Unlike Nokia’s maps, which can be embedded in your phone Google has to rely on a web connection to download them each time. The other thing about it – and most other similar – phones which doesn’t get reported much is that it is actually difficult to read the screen when you most need to – walking in daylight. But one has to admit for all these occasional quibbles the new generation of smartphones offers awesome yet affordable technology. I would not have dreamed it possible 20 years ago.

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(Source The Guardian)

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BBC says project aimed at delivering English lessons through mobile phones in Bangladesh has got off to a good start

In mobile technology, it is often the developing world that leads the way – by using mobile phones to teach people a foreign language, for example.

In Bangladesh, more than 1m English lessons have been downloaded to mobile phones as part of the BBC’s Janala sercvice, the corporation announced today at the World Mobile Conference in Barcelona.

Offering hundreds of three-minute audio lessons and SMS quizzes for less than 4p, Janala – meaning “window” – provides low-cost education through handsets – in a country where English is not as widely spoken as elsewhere in Asia.

The service is very simple: by dialling “3000″, mobile users access classes ranging from “Essential English” to the more advanced “How to tell a story”. The BBC has also set up a website giving learners free access to content.

According to Sara Chamberlain, the head of interactive for the BBC World Service Trust, the broadcaster’s aim was to make English – the international language of business – within the reach of millions of non-Anglophones. It is aimed at young people living on less than £2 a day.

This news report shows students learning English with Janala.

Since it was launched in November 2009, 1,030,583 Janala lessons have been accessed, with Bangladesh’s 50 million mobile users eager to learn English to improve their access to the global economy.

More than two-thirds of people who use the beginners’ service return, which is impressive considering the 5% “return rate” for mobile products in Bangladesh. The BBC said overall 39% of callers returned to Janala.

An impressive majority of Bangladeshis – 84% – consider English essential to securing a good job and educating their children, according to a BBC survey.

“We knew demand for English was strong in Bangladesh, but the response to BBC Janala has been nothing short of phenomenal,” said Chamberlain.

“The growth of mobile is clearly creating an opportunity to provide access to education in a way simply not possible before.”

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(Source The Guardian)

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The annual showcase of the latest games, marketing wheezes and software updates for the mobile telecoms industry is opening in Barcelona

From tiny start-ups looking to get their games and gizmos in front of Google, Vodafone and Microsoft to veterans of the telecoms industry who will be glad-handing old contacts, this week’s Mobile World Congress will host a clutch of British technology firms hoping to turn back the tide sweeping in from the US and far east. UK Trade & Investment, the government body that supports British firms overseas, is helping out 120 companies at the show and part-funding the attendance of 50.

The Cambridge-based Hypertag is typical of the firms being taken there. It has developed pioneering technology that makes it easy for advertisers to connect with consumers through poster sites that use short-range Bluetooth technology. Advertisers can use the technology to offer people anything from free music and game downloads to money-off vouchers direct to a phone.

After being funded by the Technology Strategy Board, set up by the government three years ago to invest in innovative technologies, Hypertag has worked for 18 months with the billboard firm JC Decaux and PSI, the airport advertising part of Aegis. Having tested its technology in Luton airport, Hypertag is looking for partners in Barcelona. “We’ve got technology which we know companies want to use and now it’s all about sales,” said director Jonathan Morgan.

UKTI is also helping Movirtu, which is targeting the billion people in developing countries who live on less than $2 a day and cannot afford a mobile phone but may spend 30% of their income on phone calls. Its MX Share service, already tested in Africa, allows people to make and receive calls and texts on someone else’s handset, without them needing their own expensive sim card, handsets or additional software.

At the show, Movirtu will launch a new service that will give users easy access to information on healthcare, education or even agriculture through mobiles. It is also looking for network partners in developing countries, said the chief executive, Nigel Waller. “We would like to move forward with a number of operator agreements to give us scale.”

Also eyeing the developing market is Synchronica, which will showcase two new low-cost MessagePhone handsets that offer all the functions of a BlackBerry, such as emails and texting, but at under $100. Other UK-listed firms include Intec, which specialises in billing systems for mobile networks, the Bluetooth-chip designer CSR, mobile marketing specialists 2ergo and mobile banking experts Monitise.

But it’s not all about gadgets. Also plying their wares will be Foof Productions, the Gateshead-based mobile phone game creators, and the Middlesbrough-based developer, Fluid Pixel. They are the creative parents of Animentals, a mobile game that takes a twisted take on the virtual pets craze spawned by Tamagotchi in the 1990s.

Already available on Nokia’s Ovi store and with an iPhone version due out soon, Animentals takes place in the hospital of Dr Foof, who must nurse a collection of crazed pets back to full mental health, partly through a series of challenges. The Animentals range from the depressed Goth penguin Pingoth to the highly unstable Furball. “What Dr Foof is offering is rehab for damaged digital pets,” says the game’s producer Andy Banks. After four days in the hothouse of the congress, it’s a need many of the attendees will recognise only too well.

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(Source The Guardian)

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New Mobile & Latest Deal News!

Free on O2 with 600 minutes and unlimited texts for £25 per month, plus you can claim 7 months half price line rental via cash back. Stock is due within a few days.

The Nokia X6 has an impressive 3.2 inch touchscreen that covers almost the entire front of the phone giving it a very innovative and unique design. The phone is pocket and palm friendly measuring 111 x 51 x 13mm and it’s great for watching movies with the 16:9 aspect ratio screen. With 32GB of internal memory there’s plenty of storage too. The X6 runs on Symbian OS v9.4 and has a 434 MHz processor, which is enough to compete with many of other smartphones on the market. The new X Series range from Nokia, will replace the XpressMusic range. As well as launching the X6, Nokia will release the entry-level X3 slider phone iearly in 2010.

The X6’s TFT capacitive touchscreen gives a crisp, bright image and comes with scratch resistant glass. There is a built in accelerometer for automatically switching the screen from portrait to landscape, for widescreen images and videos. For texts and emails the X6 also supports handwriting recognition. The 5 megapixel camera from the Nokia N97 is built-in, it has Carl Zeiss optics, auto focus, LED flash and geo-tagging to take fantastic images of your favourite moments and stamp them with their exact location. The camera also has video recording capabilities and there is the ability to edit images with software provided in the package.

Connectivity-wise, the Nokia X6 has all the usual feature you would expect in a smartphone, 3G, HSDPA, Wi-Fi, Bluetooth, GPS and a microUSB slot to transfer files with or without wires. To ensure you never get lost the X3 has Ovi maps 3.0 satellite navigation software pre-installed. The X6 combines style and technology to bring a fantastic, feature packed flagship phone to the X Series.

Compare all Nokia X6 32GB deals

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Mobile phone operating system can now be modified by anyone as Nokia’s platform struggles to compete with Apple and Google

Symbian, the operating system used in the majority of the world’s smartphones, is now available as an open source platform four months ahead of schedule as it looks to compete with Apple and Google’s Android.

In a move widely seen as a desperate attempt to prevent Google and Apple from grabbing an ever-larger slice of the smartphone pie, Nokia took control of the UK-based Symbian in the summer of 2008, announcing plans to make its mobile phone software free of charge.

Nokia helped create Symbian with the UK-based Psion more than a decade ago and it is installed in some 330m mobile phones across the world. But its share of the smartphone market has come under attack. Two years ago, Symbian devices accounted for almost 60% of the market, but now account for less than 50%. Industry experts Ovum reckon that figure will fall to below a third by 2015, in part because of the influence of Android, which is also open source.

The Symbian Foundation, which runs the platform, said the switch from a paid-for proprietary model, where developers had to pay a licence fee to create devices using the software, to a free open source model is the largest in software history.

Any individual or organization can now take, use and modify the code for any purpose, whether for a mobile device or another piece of kit.

Lee Williams, executive director of the Symbian Foundation, said: “The development community is now empowered to shape the future of the mobile industry, and rapid innovation on a global scale will be the result.

“When the Symbian Foundation was created, we set the target of completing the open source release of the platform by mid-2010 and it’s because of the extraordinary commitment and dedication from our staff and our member companies that we’ve reached it well ahead of schedule.”

The hope is that allowing any developer to use Symbian will speed up the development of new and innovative devices, which will help the platform to see off the threat of Apple and Android.

But it is competing in an increasingly crowded market. Handset manufacturers from LG and Samsung to Sony Ericsson have their own proprietary operating systems, as do RIM, maker of the BlackBerry, Palm and Apple. Microsoft is still trying to gain traction for its Windows phone operating system, while a slew of handsets with Android installed will be launched this year.

All 108 packages containing the source code of the Symbian platform can now be downloaded from Symbian’s developer website under a public licence. Also available for download are the complete development kits for creating applications and mobile devices.

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(Source The Guardian)

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• Chief executive “very interested” but refuses to say whether talks have taken place
• Vodafone reports better-than-expected third-quarter profits

Vodafone has set its sights on selling the Apple iPad in the UK after its success with the iPhone, which it started selling in the UK last month.

Speaking after the world’s largest mobile phone company by sales announced better-than-expected third-quarter results, chief executive Vittorio Colao said he was “very interested” in the iPad, which Apple boss Steve Jobs unveiled in San Francisco last week.

“I have not, personally, touched one but I really look forward to it. I believe it is going to be another important piece of the [mobile] data experience.I think anything that improves the customer experience with mobile data is welcome and as such I would be very interested in having it.”

He refused to say whether any talks have actually taken place, but Apple is understood to be scouting for UK wireless partners for the device. Earlier this week O2 UK chief executive Ronan Dunne said he is also interested in the iPad, but it is unclear exactly how it will be sold this side of the Atlantic.

There is speculation that O2 and Orange have already put in an order for the micro-SIMs needed to provide 3G wireless connectivity in the iPad.

Orange has already started talks with Apple to sell the iPad in the UK. The company, owned by France Telecom, was also the first British network to break O2’s exclusive hold on the iPhone. It started selling the handset last November and is understood to have sold over 200,000 by Christmas.

Vodafone’s third-quarter results yesterday were boosted by sales of smartphones, which pushed the company’s revenues from mobile data services – such as internet browsing – over £1bn in the quarter for the first time in the firm’s history. In the three months to end December, 25% of all new phones sold by Vodafone across the world were smartphones, up from 20% in the second quarter of the year, with the bulk of those sales in Europe. Colao said he expects smartphones to make up between 30% and 40% of all the phones the company sells in its next financial year to end March 2011.

The figures were warmly welcomed by the City as showing signs of recovery in some key European markets such as the UK and Germany, where the company has lost ground to rivals and been battling against the tough economic climate, while its cost-cutting programme is also bearing fruit. Shares in the company were up almost 5% after the company raised its forecast for free cash flow for this year by £500m to between £6.5bn and £7bn and forecast annual operating profits of £11.4bn to £11.8bn, rather than its initial forecast of £11bn to £11.8bn.

On a like-for-like basis, revenues fell slightly in the quarter but the decline was far less than in previous quarters. Overall third-quarter revenues were up more than 10% to £11.5bn as the company benefited from currency fluctuations.

Colao said he was conditionally optimistic about the group’s prospects. “I keep my feet on the ground; I see what I see. I see a few things going in the right direction. I see mobile data continuing to grow. I see a good performance in [fixed-line telecoms]. I see in some markets like the UK and Italy a good performance, but I still see a lot of price pressure in voice and I still see unemployment being a concern in Europe.”

There had been some speculation, ahead of the results, that shareholders were pushing for a break-up of the company as it has consistently underperformed its publicly quoted peers. Colao, however, said the size of the company – which has operations from western and central Europe through to Turkey, India and South Africa as well its Verizon Wireless joint venture in the US – not only gives it scale in purchasing, but also an advantage in international roaming rates and helps it to attract business customers”There is a full set of opinions on how to structure Vodafone and we take due notice of all of them,” he said. “The board regularly reviews our corporate structure but there is unanimous consent now that in our opinion the current structure serves shareholders well.”

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(Source The Guardian)

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Which? campaigned for the Office of Fair Trading to scrutinise the proposed tie-up, rather than authorities in Brussels, because it was a deal that affected British consumers

Consumer groups today welcomed confirmation that UK competition authorities have asked Brussels for permission to investigate the proposed merger of Orange and T-Mobile.

A spokesman for Which? said this morning that it had campaigned for the Office of Fair Trading to scrutinise the proposed tie-up, rather than authorities in Brussels, because it was a deal that affected UK consumers.

“We have been very keen to have this looked at because T-Mobile and Orange have networks here. This merger affects British consumers and we think it should be looked at,” a Which? spokesman said.

If T-Mobile and Orange merge they would have a 37% market share of retail customers in the UK, or 40% including the virtual mobile network operators such as Virgin Mobile that use the two companies’ networks to run their services.

In December Consumer Focus and the Communications Consumer Panel wrote a joint letter to Neelie Kroes, the Brussels competition commissioner, urging a UK review of the deal, which is originally under the scope of Europe because two thirds of the turnover of the parent companies – France Télécom and Deutsche Telekom respectively – is generated outside the UK.

The OFT confirmed to the stock market this morning that it had made a request to the European commission to refer the UK aspects of the proposed joint venture between the two companies.

“The OFT’s initial view, following consultation, is that the joint venture threatens significantly to affect competition in mobile telecommunications in the UK,” the OFT said in a brief statement.

“If the request is granted, the OFT intends to examine the proposed joint venture with a view to deciding whether it should be referred to the Competition Commission for an in-depth investigation,” the OFT said.

If the OFT is handed the powers to investigate, it would delay the plans by the two mobile phone companies to consummate their deal, which was originally announced in September and slated for approval by the Brussels competition watchdogs as early as mid February. The OFT would conduct its own analysis of the situation before deciding whether to refer the tie-up to the Competition Commission for a detailed investigation that could last as long as six months.

The OFT said it had petitioned Brussels under Article 9 of the EU merger regulations.

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(Source The Guardian)

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• Orange and T-Mobile hoped to escape UK scrutiny
• Merger would create country’s biggest operator

The Office of Fair Trading is calling for the proposed merger of Orange and T-Mobile to be investigated by the regulatory authorities in Britain rather than merely subjected to scrutiny in Brussels.

The news, expected to be announced on Wednesday, will be warmly welcomed by consumer groups that have campaigned hard for OFT scrutiny of the deal. There are fears the merger, which will create the UK’s largest mobile phone network, could hamper competition and force up prices for consumers.

It is a blow for Orange and T-Mobile, currently the third and fourth placed networks in Britain, as it means a further delay to a deal originally announced in September. They had hoped scrutiny of the merger would be confined to regulators in Brussels, with clearance possibly granted as early as mid-February. Orange and T-Mobile have been lobbying the OFT, the telecoms watchdog, Ofcom, and Brussels regulators in recent weeks to try to assuage competition concerns.

But the OFT will inform the European commission that it remains worried about certain aspects of the merger and wants to subject it to further scrutiny, dragging out the process for weeks, possibly months. The OFT is understood to be particularly concerned about the effect on the UK’s smallest mobile phone network, 3, and the merged group possibly having a stranglehold on the country’s mobile phone spectrum.

The OFT’s decision raises the possibility the deal could be referred to the Competition Commission, whose investigations can run for six months or more. The OFT is not, however, believed to be planning to call for an immediate Competition Commission inquiry. Instead it hopes to use the threat of one to wrest a number of undertakings from Orange and T-Mobile.

The deal would give Orange and T-Mobile more than twice the mobile phone spectrum owned by market leader O2 or second-placed Vodafone, and more than five times the amount held by 3. The government is hoping to auction more wireless spectrum over the next few years, including the slice of the airwaves freed up by the switch to digital TV. But before it can start the sell-off, the regulator needs to deal with the capacity the companies already own. Vodafone, O2, Orange and T-Mobile all want to upgrade the spectrum they were given in the 1980s and 1990s to carry so-called 2G voice services, making it capable of running 3G mobile broadband. But they all own different parts of the spectrum and 3 has no legacy network capacity at all.

As part of the government’s Digital Britain process, its independent spectrum broker Kip Meek suggested a wholesale restructuring of the airwaves, capping the amount of spectrum any operator could hold in return for freeing up existing spectrum for 3G.

The Orange and T-Mobile merger was announced towards the end of his negotiations. He was able to take it into account but the whole deal has been thrown into confusion by objections from BT, which is threatening to take the government to court.

The Department for Business, Innovation and Skills extended the consultation deadline on the plan by a month in an effort to appease BT. But the new deadline, this Friday, might not leave time to enact the necessary secondary legislation before a general election. The OFT is concerned the T-Mobile and Orange deal might go ahead with no workable spectrum plan in place and it wants to ensure the merged group does not rule the airwaves.

The merger with Orange could also jeopardise T-Mobile’s network sharing deal with 3. The operator has helped cut mobile prices in the UK and chief executive Kevin Russell said yesterday its two-year-old network-sharing joint venture with T-Mobile – called MBNL – is an important part of its future. The OFT is concerned the introduction of Orange could unsettle the venture, hampering 3’s ability to compete.

“MBNL for us is a fundamental strategic platform,” Russell said yesterday in a presentation to analysts about his network. “It is a fundamental piece of our strategy, any exposure, however remote, to that not being supported by the merger of Orange and T-Mobile is a risk for us we believe needs to be closed off.”

Delays and trade-offs

The OFT has no power to force companies to change the way mergers or acquisitions are structured, but it can threaten to bring in the Competition Commission to run a full-scale inquiry. Many companies would rather reach a deal than go through that lengthy process. Last year the OFT struck a deal with the Co-op: the supermarket agreed to sell 133 stores across the country in return for having its merger with Somerfield passed without a competition inquiry. The stores were snapped up by rivals such as Morrisons and Sainsbury’s. In the spring, the OFT accepted undertakings from Global Radio that it would sell a clutch of radio station in the Midlands – including Beacon, Mercia and Wyvern – to avoid a Competition Commission inquiry into its £375m acquisition of GCap Media, after raising concerns that the deal could harm the region’s advertising market. More recently, the Co-op proposed selling some of its funeral parlours in the south west to gain clearance for its acquisition of Plymouth & South West Co-operative Society, an independent co-operative which as well as being a food retailer is also a provider of funeral services.

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(Source The Guardian)

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(Source The Register)

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