3 CEO: UK's operators will suffer 3G miseries

Bob Fuller, CEO of mobile operator 3, has warned the problems that dogged the UK's first third-generation network will affect the likes of Vodafone as it ramps up its own 3G offerings.

Fuller said of his network's experiences: "It hasn't been an easy ride... we listened, we learned, we fixed stuff." But referring to rival operators, he added: "They face the same problems we surmounted a while ago. Everything we've experienced since we launched in 2003, we've assimilated."

One such problem that the company encountered was a gulf between what 3G users said and what they did. "There is a difference between what customers say they want and what they actually want," Fuller said. "We realised that customers' needs only became apparent after they started to use the service."

With 3G now expected to reach 300 million people in Europe by the end of the decade, 3's CEO claimed that without 3, third-generation networks would have remained on the drawing board.

He said: "Frankly, [3G] still wouldn't exist if we weren't forcing the issue."

Fuller's comments came as he announced an update to 3's strategy, amid growing speculation that an IPO will be part of the company's not too distant future. The revised strategy will include new revenue streams such as third-party advertising to its customers and a channel devoted to video clips sent in by users.

The third-gen network firm also announced that from now on, any customers who download a music track will be able to access the same song online, download it to their PC and burn it to CD.

3's head honcho also revealed the company is looking into "partnering with financial services firms".

Fuller said that could include using stored value on customers' SIMs, contactless payment in shops or using phones to pay for London Underground tickets.

3 is also considering offering the Pupillo - a webcam-style device for phones - to its customer base within the next few months.

Fuller revealed that one-third of its regular users now download 3G content or use paid-for 3G services and 40,000 of its customers have signed up to the internet access services it debuted around a month ago.

However, none of those users can expect a pure-play 3G data card from 3 any time soon, with 3 maintaining there's no massive draw from the customer. Fuller said: "We didn't think it was relevant in our first couple of years." However, the company recently launched a product to allow 3 customers to use their handset as a modem.