US cellular still emerging market

AS VODAFONE huffs and puffs over its latest admission of declining European revenues, the fortunes of the other major names in the industry vary widely.

The US still behaves like an emerging cellular market and Hutchison's 3 European networks, for example, are selling mobile broadband connections like hotcakes.

Perhaps the strangest announcement has come from Norway's Telenor which claims to be the biggest Nordic provider. Telenor has followed the classic Arun Sarin (Vodafone boss) ploy of expanding into emerging Asian markets.

Telenor has networks in Thailand, Malaysia, Bangladesh and Pakistan which are all hurting. It was worst affected in Bangladesh where revenues fell by 14 per cent but still continues to invest in all four Asian markets.

By contrast with Vodafone, which is not faring so well in the UK and Spain, Telenor's revenues have held up in its home markets. Dutch group, KPN, however, reckons it is going to make more money than expected.

The company says it has got its cost cuttings right and significantly names the migration over to an all IP-based network as one of the ways it is managing to save money. It doesn't say how far this process of going over to IP is progressing for its mobile network.

Even more amazingly, in the States AT&T has added 1.3 million new subscribers – while arch rival Verizon added 1.5 million.

What is going on? This jump can't be put down to 3G Iphone users because sales only began in July and these figures are for Q2.

Incidentally, AT&T said the 3G Iphone is selling twice as fast as the original Iphone so maybe the Duke of Cupertino will sell 10 million devices in a 12 month period this time.

So, how do you explain the States' growth considering its economy is faring just a badly as others? The INQ reckons that it's because the US is still an emerging market.

Despite protestations to the contrary, the US has been hit by the existence of incompatible cellular systems. Luckily, Sprint has ensured that instead of three major network types (with Nextel), there are now only two serious contenders.

So who's doing really well in Europe? The answer appears to be 3 whose six networks (Austria, Denmark, Ireland, Italy, Sweden, and UK) have together managed to sell one million mobile broadband contracts.

To put that into context, 3 UK only has three million customers in total and is still smaller than Virgin Mobile/Media, the MVNO.

3 is still ranting on about how much bigger mobile broadband would be if data roaming charges (using broadband abroad) weren't so extortionate.

Actually it shows what a golden opportunity their rivals are missing. A massive 96 per cent of all 3’s data roaming is now carried between the various 3 networks because it costs no more than at home.

What a truly excellent way of ensuring your customers roam onto your sister networks and not onto one belonging to one of your rivals. That loyalty to 3's data network has surely spilled over into voice traffic, too. µ