Vodafone goes it alone in Australia

Vodafone, the world's largest mobile phone operator, is to spend hundreds of millions of dollars in Australia over the next two years.

It is to build a third-generation mobile network alone, after failing to find a partner.

Its most likely partner would have been Hutchison Whampoa's local business, Hutchison Telecommunications (Australia), as it is the only company to have launched the technology in Australia so far.

3G enables customers to make real-time video calls, and use Internet-based services as well as making voice calls and sending text messages.

Managing Director Grahame Maher said Vodafone had held detailed discussions with several mobile operators about working together to build a 3G network, but none were willing to back a roll-out as soon as 2005.

Australia's two biggest mobile phone operators, Telstra Corp Ltd and Optus, owned by Singapore Telecommunications Ltd, say they see no reason to spend on a 3G network yet because their existing networks could offer the same multimedia content.

Vodafone wants to introduce a 3G service in Australia as part of a worldwide roll-out, encouraging customers to dispense with land lines in favour of mobile phones.