Vodafone kicks off 3G in Japan, while Orange ditches plans in Sweden

NEWS After the customary delays, Vodafone today launched third-generation mobile internet services in Japan on its J-Phone network. The launch is the company's first 3G foray globally, yet behind 3G debuts of the two other major Japanese operators, NTT DoCoMo and KDDI. Vodafone wants J-Phone to sign up a million 3G users by March 2004. The network launched to 71 per cent of Japan, though there should be 98 per cent availability by that target date. The multinational network operator has been fairly conservative about its 3G expectation lately but the March 2004 target may still prove tricky. DoCoMo, which uses W-CDMA technology like J-Phone, had around 150,000 3G users after 14 months. However, analysts have pointed to some of the business benefits of a J-Phone 3G phone. They will not be 3G only, as was the case with DoCoMo's first handsets, and they will allow roaming with dozens of 2G networks worldwide - a major advance for Japanese users. KDDI has been able to sign up 3G customers more quickly than DoCoMo after a relatively simple upgrade to CDMA2000, the main 3G standard in competition with W-CDMA. Vodafone wants 20 per cent of its service income to come from non-voice services by 2004, it has said. Meanwhile rival Orange, as expected, is to withdraw from the Swedish 3G market. After petitioning the regulator earlier this year it was not granted any roll out concessions. It cited licensing and market conditions as the reason for the withdrawal. Two hundred and thirty-four jobs will go. France Telecom, Orange's owner, recently announced capital expenditure cuts as it handles billions of euros of debt.