Handset delays rock BT's 3G launch

While BT's 3G strategy falters, NTT DoCoMo of Japan has announced that it will go ahead with the commercial launch of its 3G service in October, despite concerns over network performance.

"[3G] technology has slipped from when the licences were awarded," said Peter Erskine, chief executive of BT's wireless unit, who also announced a rebranding of BT's wireless division. The division, incorporating BT Cellnet, Genie, Viag Interkom and Digifone, will now be known as mmO2 and its brand will be O2 from spring 2002.

When they eventually appear in the UK, 3G mobile services will offer applications such as higher-speed Internet connections, messaging services and video conferencing to mobile phones. European carriers spent almost $100bn last year on buying 3G licences in countries across the continent, but BT anticipates that most customers will have to wait for a service. A trial of 3G services by BT subsidiary Manx Telecom was recently postponed due to technical hitches.

A BT spokesman told IT Week that the rebranding of its wireless division would not affect its service provision, although many questioned the logic of dropping established mobile brands. Analysts estimated that if mmO2 is spun off, the firm would be valued at about £10bn. "It is products and services that customers are interested in, not what the company is called or its logo," said Mark Blowers, senior research analyst for market watcher Butler Group.

Ericsson has also unveiled a new division, Ericsson Mobile Platforms, to speed up wireless technology developments.