Orange to use British technology in mobile videophone

Orange has announced it will introduce a mobile phone next spring that allows Internet access and videoconferencing on the move. However, the company has ignored big brand mobile hardware manufacturers in favour of technology developed by a British university.

Touted as a "video phone", the handheld device will use Microsoft Windows CE 3.0 operating system. Orange claims videoconferencing, email, Net access, fax viewing, Microsoft applications and PDA-style functions such as an address book will all be available for an initial fee of around £500.

The phone will use video compression technology developed by the University of Strathclyde. Even though a high-speed data card only allows transfer speeds of between 28.8Kbps and 64Kbps, one analyst said the video quality is adequate.

Henry Harrison, senior consultant at telecoms consultancy Schema, said: "Having seen the prototype, I'd say it'll be something to be reckoned with."

3G mobile networks based on the W-CDMA standard will be built out across Europe after UMTS licences are awarded. They will allow broadband data rates, and therefore real-time video. Until then, some operators have looked to midway (2.5G) technologies such as GPRS to offer new services. These technologies enhance existing GSM networks.

However, Schema's Harrison said Orange may well have upped the ante. "Video is a huge issue essentially because it's sexy," he added. "If you want to provide premium content, most of what's out there today is predominantly video. I am not convinced Orange will have a market-beating product, but they're showing they're going to knuckle down and prove this type of thing is possible."

Vodafone AirTouch, the UK's largest mobile operator, said it has recently been testing its own videophone technology in association with Ericsson and other partners. It said roll-outs are also dependent on handset technology - an area where Orange is seemingly shunning traditional suppliers.

Orange has declined, for now, to name the third party that will be manufacturing the video phone. The decision to use the Windows CE OS would appear to rule out Psion or Symbian involvement.

A commercial name for the product will be announced nearer its launch.