NEC springs into Europe with dual-mode 3G

Mobile phone manufacturer NEC has said it expects to ship the world's first dual-mode third-generation (3G) mobile phones to European operators early next year, but analysts remain sceptical.

Dual-mode handsets allow users of 3G phones to operate their mobiles on both third-generation and existing infrastructure. Japan's NTT DoCoMo, which runs the world's only current 3G network, only sells single-mode handsets, which means they do not work outside the 3G-enabled Tokyo area.

European operators have expressed concern over the lack of 3G handsets and cited their scarcity for being partly to blame for a slow network rollout. UK 3G licence holder, Hutchison, will be one of NEC's first customers, but analysts doubt the handset manufacturer's boast of being ready to ship product by spring.

"It's fair to say that a lack of handsets has slowed down the pace of 3G development and it's often been a software failure that's the problem," said Amrish Kacker, senior consultant for telecoms market watcher, Analysys.

Kacker does not believe that any 3G handsets will be ready until late 2002. "Let's not forget that no UK network will be up and running until 2003 at the earliest to employ these handsets anyway," he said.

Kacker did welcome the dual-mode option. "It's the only option for 3G, really. NTT DoCoMo only offered a single-mode handset because they were under pressure to get a network out, as the existing market was saturated."

"It's not uncommon in Japan to carry more than one mobile anyhow," he added.