European managers expect higher mobile speeds to build better customer relationships - and vendors say this is imminent. But rollout will occur slowly and unevenly, forcing firms to adopt these new technologies in stages says Forrester Research in a new report "Mobile's High-Speed Hurdles," which outlines how companies must act on new mobile opportunities to serve customers better, strengthen ties with partners, and boost internal productivity while hedging their bets on shaky technologies.

"Hype from vendors like Nokia and operators like Orange says that European firms will get 2 Mbps speeds on mobile devices and connect anywhere at anytime - all by 2002," explains Lars Godell, analyst for Forrester Research B.V. "The reality is that gradual, uneven bandwidth upgrades will creep along through 2007 and only city areas will see 2 Mbps speeds by 2007."

Forrester believes that Europe's high-speed mobile future will be enabled by a series of new mobile network technologies like General Packet Radio Service (GPRS) and Universal Mobile Telecommunications System (UMTS). These technologies will transform the way corporations serve customers, reach business partners, and communicate internally -- but only after they are widely standardised and implemented.

"To increase mobile speeds and global connectivity, new technologies are being developed, including always-on packet-switched connections and Bluetooth, a short-range radio technology that allows high-speed communication between devices and networks," added Godell.

"The benefits these technologies offer will arrive later than promised for a number of reasons, mainly because operators will not be able to justify the huge investments needed to build an entirely new mobile network. Shaky standards and incompatible handsets will also give early adopters a bumpy ride.

"With a patchwork of high-speed mobile standards persisting over the next seven years, European firms face a dilemma. If they act too late, they will miss opportunities to mobilise business processes and reach customers in new ways. If they act too soon, they risk being burned by premature commitments to immature technologies. To cope, firms must match mobile data projects to technology realities in three stages. Firms should start in 2000 by experimenting and laying the groundwork.

Richard Byatt