Orange has defected from long-term supplier Nokia and chosen arch-rival Ericsson to provide packet-based mobile multimedia services through general packet radio service (GPRS) technology.

The deal, valued at £37m, includes a complete GPRS system, including core network infrastructure and terminal devices such as handsets and PC cards. Services are expected to go live at the end of this year.

Orange's network is currently all Nokia and the first handsets for its Wap launch were supplied by Nokia, but delays in delivering handsets in volume has led to friction between the two companies.

"Ericsson offers the latest technology and it demonstrated an evolution path towards 3G [third generation mobile services]. Terminals were also part of the agreement," said an Orange spokesman.

As well as high-speed internet and email access, GPRS will allow Orange to offer its customers location-based services, which enables them to find the nearest restaurant or cinema. The mobile phone giant will also offer customers transactional services, such as the ability to buy a holiday or order a pizza.

Orange will launch a variety of devices to support these services, including handsets with larger screens, and data cards that plug directly into laptops.

Bob Fuller, Orange chief operating officer, said: "With GPRS, customers will be offered packet-based services in combination with the high-speed circuit-based services that are already available and will further extend the way we communicate and access information."

The service will be complementary to Orange's high-speed circuit switched data infrastructure, which is in corporate trials and will be released within the next few months. An Orange spokesman confirmed that there are delays from Nokia in supplying data card products necessary for this service in bulk.

Nokia will still be supplying upgrades to the existing radio and switching network infrastructure, covering nearly 7000 sites.

John Matthews, principal consultant at analyst Ovum, said it is "mildly unusual for Orange to go to Ericsson, because carriers normally stick with suppliers".

"This is a nice feather in the cap for Ericsson. Nokia will be disappointed," he added.

See also:

Nokia adopts IPv6 for mobile internet

In a bold endorsement of the next generation internet protocol, Nokia has announced that it will base the IP core for its future third generation (3G) mobile networks on IPv6.  26 May 2000

Orange snubs mobile giants for UK startup

UK mobile operator Orange has recruited a Cambridge-based startup to develop devices for accessing its high-speed wireless data services.  17 May 2000

3G auction threatens mobile net take-up

The UK government's auction of third generation (3G) mobile licences has sent operators into a frenzy. But critics say the process is out of control and warn that there will be a knock-on effect on mobile service prices.  29 Mar 2000

Speeding up the Wap revolution

The world has clearly gone mad for Wap, but industry experts warn it must evolve quickly if it is to deliver on its potential.  23 Mar 2000

UK businesses say: if the Wap fits, wear it

Mobile internet access is changing the way the UK does business.  28 Feb 2000

Orange future unclear after Vodafone deal

Mannesmann is likely to have to squeeze out Orange, the UK mobile operator it bought in October, after the German operator agreed to be taken over by UK giant Vodafone Airtouch.  05 Feb 2000

High-speed mobile technology will make early arrival

GSM World Congress: High-speed mobile data technology is expected to come to market in the UK this year, but users may find handsets hard to find.  02 Feb 2000

Wap phones are slow and expensive, says analyst

Users of Internet-enabled mobile phones are complaining of expensive bills and slow response times, just weeks after the phones were launched in the UK.  28 Jan 2000

Orange and Vodafone follow BT in offering UK Wap services

Orange and Vodafone are rolling out commercial wireless application protocol (Wap) services before the end of the next month, following BT's announcement of the UK's first such offering last week.  24 Jan 2000

Orange plans high-speed alternative to GPRS

Orange today dismissed hype surrounding next generation 'data only' wireless networks, as it launched its own alternative mobile data service that runs on top of its existing voice network.  29 Nov 1999

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