T-Mobile to offer 20Mbps 3G service?

Rumour has it that T-Mobile is planning a 20Mbps wireless line for only £8.50 by 2010. I felt slightly uneasy when reading those news. One has to think of the reasons why T-Mobile would launch such a service, especially when the report suggests that T-Mobile's offer is unlimited in nature.

Viewed from a logical financial point of view, it does not make economic sense for T-Mobile to offer an unlimited wireless internet access for so cheap when most of their income is derived from mobile telephony.

If users start to use Voice over Internet Protocol to make their calls, then this is the perfect recipe for disaster; for 2005, the average revenue per user per month was £42 for contract users and £10 for contract with non-voice generating 18% of the ARPU. Going down to £8.50 will cause a bloodbath.

Moreover, the T-Mobile offer is rumoured to be based on HSPDA technology or High Speed Downlink Packet Access often referred with the moniker "3.5G" as compared to 3G. This means that upgrades will have to be made to the T-mobile current network and that will cost a lot of money.

T-Mobile's current unlimited mobile internet offer called web'n'walk but comes with a long list of restrictions - no modem access for computers, internet based video/audio streaming services, peer to peer file sharing, internet based video download and internet based telephony. So much for unlimited high speed internet.