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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 (opens in new tab) 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 (opens in new tab) 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.

Désiré has been musing and writing about technology during a career spanning four decades. He dabbled in website building and web hosting when DHTML and frames were en vogue and started writing about the impact of technology on society just before the start of the Y2K hysteria at the turn of the last millennium. Following an eight-year stint at ITProPortal.com where he discovered the joys of global tech-fests, Désiré now heads up TechRadar Pro. Previously he was a freelance technology journalist at Incisive Media, Breakthrough Publishing and Vnunet, and Business Magazine. He also launched and hosted the first Tech Radio Show on Radio Plus.