Currently the only third-generation (3G) mobile data network available in the UK is operated by 3, and the firm has recently altered the pricing of its services. Previous tariffs involved high monthly charges and were not popular; the new prices are structured to compete with the high-end business tariffs offered by the other operators - and they seem to offer a good deal if you use around 300 voice minutes a month or more.
The result is that people who use the phone a lot will see lower call charges, and this has prompted more subscribers to sign up. The tariffs are also linked to time-limited offers designed to reel potential users into the service.
There also seems to be a large subsidy to resellers - a £400 phone is included free in the deal. Only time will tell whether 3's strategy will work, but Hutchison, 3's parent company, has a good track record in marketing; remember the old Rabbit network and the early days of Orange when its creativity was legendary?
None of the other mobile operators have made any significant announcement about 3G for a long time, but they must be rushing around revising their business models after 3's bold move into the market. Vodafone, O2, Orange and T-Mobile do not have a clean sheet from which to start, unlike 3.
So they will have to make sure that pricing changes do not upset their current customers - they will need to perform a tricky balancing act in preserving their revenue streams whilst still competing effectively with 3.
This is sure to result in an even wider ranger of more complex tariff options. However, this is what competition is all about and it should result in better deals for the customers, if they can figure out how the various services and pricing options compare.
Rival operators may be able to trounce 3 in providing a wider range of 3G handsets for customers to choose from. At present, 3 subscribers have a choice of only three mobiles: the Motorola A380, the NEC e606 and the NEC e808. All have unusual feature sets so it is well worth checking them carefully before you buy.
Other 3G phones should appear soon. Nokia announced "commercial availability" of its 6650 phone last September, and said it was the first to support seamless handovers between GSM and 3G networks. About 20,000 of these handsets have been going through extensive trials with operators and infrastructure manufacturers since then, and the phone has enough features to make a significant impact on the market. All the 3G phones so far available will let you view video clips over the air, so there's no need for football fans to worry about which mobile to buy.
As well as competitive tariffs, the business user is looking for usable email and web browsing capabilities on their phone, plus the ability to connect to the corporate network via a notebook PC or a PDA. Networks and mobiles may soon offer speeds up to 384kbit/s, which will give the mobile data user a much better experience, close to that offered by ADSL.
Let us hope that the networks are sensible about data tariffs and don't set the prices so high that many applications are precluded.
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