Telecommunications - Mobile Communications
The UK mobile market is still growing, there were over 60 million subscribers recorded in September 2005 (Source: MOA).
The four Global System for Mobile Communications (GSM) operators namely Vodafone, O2, T-Mobile and Orange were joined in March 2003 by the first 3G operator, "3" (Hutchison 3G UK Limited). Vodafone, Orange and T-Mobile all launched their own third generation (3G) services in 2004, and O2 in February 2005. 3G is the next generation of mobile phone technology and offers far greater capability in data transmission and new services such as video clips, photo-messaging, e-mail, games, MP3 player, interactive and information services.
This development makes the UK one of the first in Europe to enter the 3G market and it is a clear vindication of the Government's strategy to increase competition by bringing a new entrant into the market which is dependent on 3G for its success, '3' have no GSM network to fall back on. In turn this meant the existing operators could not delay their own 3G launches or they faced risk of losing market share. This is in marked contrast to elsewhere in Europe where the economic downturn has led to some operators deferring 3G.
Over 40 million subscribers use "pay-as-you-go" mobiles. This allows all sectors of society to access mobile telecommunications and to enjoy the benefits this brings. As such, mobile phones are one of the most inclusive technologies. An important factor in the growth of pay-as-you-go has been the emergence of the "virtual" operators, such as Virgin, who had 5.6 million subscribers by the end of September 2005. Although they have no network of their own to carry their service, virtual operators do offer subscribers yet more choice in the market.
The Government is also encouraging the use of Wi-Fi "Wireless Fidelity". Deregulation has allowed public network operators to use certain parts of the spectrum, which are exempt from licensing for Wireless LAN (Wi-Fi) type systems. Initially only personal use was permitted in these bands, but this has now been expanded to full commercial service. Intel estimated at the beginning of October 2005 that there were around 12,000 WiFi "hotspots" in several locations throughout the UK, with an estimated 1,545 providing services across London, more than any other city in the world.