Viag Interkom has launched the world’s first consumer GPRS service.
German mobile network operator Viag Interkom, majority owned by the UK’s BT, today launched the first GPRS handsets for the consumer market. Last summer, BT was the first operator to launch GPRS for corporate customers, although Interkom’s move looks to have been prompted by rival T-Mobil’s announcement that it will make GPRS handsets available to the public on February 1.
GPRS is often referred to as a 2.5G technology, bridging the gap between low-bandwidth GSM networks and high bandwidth 3G networks. It can provide a 120Kb/second data transfer rate, compared with around 9.6Kb/s for 2G mobiles and around 56Kb/s for dial-up landline Internet connections. However, the real transfer rate will be closer to 20-30Kb/s since conditions will rarely be optimal.
A GPRS network is cheaper to install than a 3G network, at around $200 million in Germany. It should give operators experience both in using packet switched infrastructure (which 3G services will be based on) and in providing mContent applications more compelling than the low-quality, low-speed offerings accessible over 2G WAP phones.
But mobile operators also hope to boost their revenues directly. GPRS has obvious benefits for business users, who need to access email and conferencing services whilst on the move. With 2G this is a slow process, whether done using a smartphone or a PDA/laptop computer linked to a mobile device. Users may well be willing to pay heavily to get a connection speed comparable to a landline.
However, the same is not obviously true for home users. The service will still be too slow and expensive to make downloading multimedia content viable – especially now that Europeans can access the Internet at home for a small, flat fee. And it seems unlikely that many domestic users will be prepared to pay $200 for a device just to get faster email, particularly since the handsets are incompatible with the 3G networks expected to launch in 2002. As the timing implies, Viag Interkom’s decision looks more like a PR move than a major part of its strategy.
