'3' sales pitch ignores 3G
Published: 03 Jun 2003 16:00 BST
Despite having its 3G networks now mostly up and running in the UK and Italy and further launches taking shape, Hutchison isn't properly pushing third-generation services.
According to the latest mystery shopper research, shops selling 3 phones in the UK - whether well-known high street chains or the company's own flagship stores - are pointing out the attractive voice tariffs on offer rather than data and video services.
In his latest research note, Strand Consult chief executive John Strand explains 3 is buying customers by offering lowest per minute prices and not focusing on non-voice services, which should account for around 40 per cent of 3G revenues, in accordance with forecasts.
He said in a statement: "These two factors can influence the customers' perception of 3 - to the effect that 3 is just a new discount brand."
3 is the first fully-fledged 3G operator in Europe and so eyes are on its progress, especially those of established 2G operators who are finalising their roll out plans.
For these companies, a high street presence is extremely important. For example next Thursday, Vodafone will open a flagship, state-of-the-art mobile phone superstore on Oxford Street, London's busiest shopping area.
Such has been the success of Carphone Warehouse, Europe's biggest mobile phone retailer, that it is now in a position to enter more lucrative market segments around Europe.
However, education of users is all-important, as Orange is going to great lengths to point out at the moment.
Strand added: "Everyone knew 3 had to start from scratch and go out and convince customers to switch to 3G but it does seem like a great pity that customers will have absolutely no idea why they should choose a 3G phone - other than cheap voice minutes."
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