mmO2 admits 3G won't be ready 'til 2003

mmO2 has admitted its 3G mobile phone service will not be widely available before the start of 2003, blaming a shortage of dual-mode handsets.

Chief executive of the former BT-owned company, Peter Erskine, echoed the recent words of Vodafone chief Chris Gent, claiming there won't be enough handsets which are compatible with both the old and the new technologies.

In spite of BT's pioneering 3G work on the Isle of Man, mmO2's Erskine admitted he doesn't expect to be first to market with 3G in the UK, and isn't even particularly interested in gaining that accolade. He told reporters in a briefing yesterday that he would rather be first to market with a product which truly appeals to customers.

Once mmO2's service is finally launched, it will be compatible with Blackberry handets, which are already in common usage in the US. The Isle of Man trials are currently using NEC handsets.

The company is investing a total of £4bn in 3G, and Erskine expects the service to add 10 per cent to the firm's revenues in its first year of operation.