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Eurobiz baulks at future phone bills

3G mobile technology may stumble at price fence

European companies are still unwilling to shell out money for faster mobile devices and applications, according to a study conducted by research firm Gartner. Companies recognise it's a good idea - it's just too pricey.

The report revealed the top three concerns about investing in mobile technology were security and privacy (76 percent), support costs of mobile devices (52 percent), and the magnitude of mobile phone bills (39 percent).

But the study clearly indicated that businesses recognised the importance of wireless web access and expected their organisations' use of such technologies would expand over the next three years.

“Companies are aware that technology does not necessarily guarantee success,” said Nick Jones, research director for Gartner’s mobile association group. “What really matters is [whether] the technology provides a service that corporate users want and need.”

As several European telcos have already paid very high premiums for licences, this attitude could pose problems.

Mobile phone and communications technology firm Ericsson has already ceased producing handsets in order to concentrate investments in 3G systems. It reckons it will save £1.2m per year this way. Even Nokia has decided to start farming out handset production to cheaper economies.

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