OXFORD, United Kingdom—European cell-phone operators seem in no rush to sign General Packet Radio Service (GPRS) roaming agreements with their counterparts over fears of technology mismatches. Given that GPRS services are targeted at corporate users, industry analysts are blaming this absence of cross-border roaming for the poor initial uptake of the GPRS mobile data service in Europe.
Only a handful of deals have been announced and this is said to be causing frustration for MmO2, which is keen to promote the service. Industry analysts claim that each roaming agreement will require fresh negotiations to discuss data tariffs and determine the interoperability of each operator’s network.
While MmO2 has been able to launch limited roaming in Europe, it is only aiming to have 20 operators signed worldwide by the end of this year, but hopes to have up to 80 by September 2003. Meanwhile, Vodafone will only admit to having three agreements in place, while T-Mobile has none, but is looking to sign its first sometime this year.
Neil Harper, MmO2’s manager of outbound roaming, said the lack of roaming contributed to the low adoption of GPRS. “High-value subscribers want international coverage, and corporate users will be cautious about using GPRS until they are certain about pricing and availability.”
Meanwhile, T-Mobile claimed that GPRS roaming would take place over the longer term, but it insisted aggressive plans are in place to meet users’ needs.
Separately, rumors circulating in London have placed MmO2 at the center of new takeover talks. Having reported slowing subscriber growth, its share price has almost halved, and this is thought to have attracted interest from Hutchison 3G, looking to gain a much larger foothold in Europe.
