Vodafone launches €150m 3G mobile service

PREMIER League football, breaking news, movie clips and video calling. Vodafone yesterday launched the third generation of mobile phones in Ireland, calling it the ultimate communications and entertainment service.

For the past two years, the company has spent €150 million upgrading its network for the so-called 3G service in addition to the €114 million it paid to buy one of the four third-generation licences sold by the Government.

A new range of handset with larger screen and capable of high-speed internet connections will hit the shops by the end of this month, with prices which start at €169.

Customers connecting to the Vodafone Live 3G service will be able to download the latest music videos, clips of upcoming movie releases and in a potential money-spinner for the mobile firm, the latest Premier League goals.

The phones will also have offer CD-quality sound, stereo speakers and MP3 players, and advanced video games.

However, adult-rated content will not be available and Vodafone says it had no plans to introduce it.

The company is the first operator to launch in Ireland, and rival O2 is expected to follow early next year.

A third operator, 3, owned by Hong Kong firm Hutchison Whampoa, will also offer the service next year.

The company refused to give details of the price of the new services, but said it would be "competitive".

Vodafone said that content purchases will be charged on an event basis, rather than according to volume. This will result is one simple line on the bill for all content charges relating to each download, allowing customers to easily track their purchases.

Vodafone chief executive Paul Donovan said yesterday the service would initially be available to bill pay customers.

Pre-paid customers form the bulk of its 1.8 million subscriber base.

The company did not say how many customers it expects to take up the service, though at group level, Vodafone is predicting it will have 10 million 3G subscribers by March 2006 in the 13 countries that launched the service yesterday.

Mr Donovan said 3G was being launched in time for this Christmas, but he did not expect mass market take-up until next year.

Mobile operators have made an expensive gamble on third generation licences.

In Britain, five companies shelled out more than €30 billion.

So far, 3 has only launched in Britain and has been far from successful in attracting customers.