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Is there a chance mobile operators might get mobile data right?

by Manek Dubash | posted on 15 November 2007

This week saw a damp squib as the iPhone failed to generate the hoop-la in the UK that Apple predicted, despite the frankly quite incredible toadying from otherwise respectable, mainstream media outlets.

And we've seen another official report that hikes the potential cost of ID cards in the UK, estimating it at over £5.6 billion over the next ten years: that's over £250 from every household, if our maths is holding up.

Perhaps most interesting of all, it looks as if wireless data is finally starting to make serious headway. Vodafone this month has announced that it's making almost 50 percent more from data in the last six months, which suggests that recent cuts in data pricing that all the operators have announced have made a difference.

Research on user forums reveals that our experience of a willingness to make data more accessible is not an isolated one. In addition to lowering data charges to the point where most people in business wouldn't question the value, Vodafone has been giving away high-end smartphones, such as the HTC TyTN II, which your correspondent now uses. The result? More revenue per user as the data charges kick in -- especially if you use it abroad as I do.

Voda has also said that it'll be increasing the speed of its HSDPA offering to 7.2Mbit/sec -- as long as you buy its latest 3G modem plus a £25 a month data pack. However, here it looks like the right hand has no idea what the left is doing, since its data pack offering for phone users costs just £7.50 a month. The main difference is that the cheaper offering has a monthly data limit of 120MB, while the modems include 3GB -- which makes the phone pack look expensive on a per-megabyte basis.

But there are many users for whom 3GB a month is massive overkill, if all they want to do is check emails and surf while on the move; there's room for a lower end package here. Just as importantly, there's room for improvement of its 3G coverage too -- but that's a drum we've beaten before.

Price it right and they'll come. Are the mobile operators finally getting the message?