O2 Wants 3G/GSM Instead of Wi-Fi

The O2 mobile phone operator is going to focus on the 3G/GSM technology instead of Wi-Fi that is the main objective for their rivals. Not only have they rejected Wi-Fi, but they have also made comments about disliking the WiMax technology at the O2 London strategy briefing from November 15th.

Dave Williams, the chief technology officer of O2, after presenting the audience a low-power GSM picocell box that will be a part of the fixed mobile convergence strategy of its company, an indoor Ericsson-built base-station using the O2 user's DSL to connect to the mobile network, has declared that they “can take ADSL and build out to a cell site, or else put the radio into the home or office. Long term, we’re looking at building in 3G/GSM rather than Wi-Fi”.

Richard Webb, directing analyst for wireless at Infonetics Research, has said on this subject that “the point is, users feel comfortable using their existing 2G phones, so using those with a PBX extension could be the sweet, simple solution right under our noses without any of the complexity of having a WLAN, and at a relatively lower [deployment] cost.”

As a mobile phone company, O2 sees the HSPDA version of the 3G technology as the best solution for mobile internet and data access, in direct opposition to carriers such as Vodafone, T-Mobile and Orange that have made huge investments in Wi-Fi hotspots, and this decision comes as a direct consequence to what Matthew Key, the chief executive of O2 UK, has said: “we've watched the market for free broadband, and customers realize that there is a scam in it”.

The O2 plan is to have its coverage go wherever the customers need it, but Dave Williams has declared that this situation will take place almost two years in advance of the HSPDA availability.