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O2 Launches Internet Service for Mobile Telephones

Posted on: Tuesday, 27 September 2005, 06:00 CDT

By Damian Reece

O2, the mobile phone network, unveiled its latest attempt to bring the internet to mobile phones yesterday, with a service using technology pioneered by the Japanese telecoms group, NTT DoCoMo.

The company already has 'Active', a mobile phone service which gives internet access based on the widely used wireless access protocol (WAP) technology.

Its new internet service uses a rival platform called i-mode, which it has bought exclusive rights to from NTT DoCoMo in the UK and Ireland. O2 refused to disclose how much it has invested in the new service. It is expected that Active will be phased out gradually over the next few years.

The company believes that its new internet service more accurately replicates the internet experience when using a mobile phone, such as being able to click backwards and forwards between pages without having to fully exit sites to move from one to another.

O2 also believes that its version of the internet on mobile phones will encourage more transactional-based online activity, and it has recruited companies such as Egg, Interflora, Interactive Investor and Monster, the jobs site, among the 100 online companies that have made their websites available for use with i-mode phones.

The launch of i-mode is an integral part of O2's growth strategy and it will be the company's biggest launch since the group " formerly Cellnet " was demerged from BT Group. By making the internet easier to use on a mobile phone, the company is hoping to increase its average revenue per user. It is claiming that that Telefonica, the Spanish mobile phone operator, had average revenues per user 4-5 times higher using i-mode than WAP phones.

Browsing and downloading will cost pounds 3 per megabit " about 100 pages " and e-mails will cost the same to send as text messages. There will also be monthly subscriptions available of up to pounds 3 a month for premium content.

Source: Independent, The; London (UK)

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