HSDPA, flat-rate mobile Internet, free-calls, Orb, Sling Media, Google, Yahoo! and Skype.  The latest X-Series device and offer from 3 certainly is pressing all the right buttons.  That is until – you read the small print.

1. “Free calls” only if you are not roaming.
2. Flat rate Internet but only within “fair usage limits”

This puts a wet cloth on the X-Series immediately.  Could 3 be making the same mistakes BASE in Belgium did when it launched its Unlimited offer (that got pulled off the shelves a few months after launch and humiliated the company when it had to drop 20+ users).

Terms such as “free” or “all-inclusive” don’t work on mobile and don’t exist. Any mobile operator that touts them will be shooting itself in the foot.

Then it gets worse.  There is a flat-rate fee for mobile Internet users and an add-on charge for extra-services such as Sling Media?  Is this in addition to the (approximately) GBP 199 consumers will have to pay to purchase the SlingBox.  Copying existing prices for Pay-TV etc. doesn’t work.  It has been tried and tested and the fact is pricing for mobile is sensitive and must be unique. 

Google and Yahoo! will be the face of the mobile Internet.  Consumers can apparently choose which brand they prefer.  This is interesting.  Brands co-exist on the Internet and should co-exist on mobile.  But, with a stronger relationship with Yahoo! and Yahoo!’s instant messenger services – Yahoo! is likely to retain its edge in the 3 portal camp.

On a more positive note  Convergence is key and TV/media is the future.  In the past few weeks 4D Interactive and DSPV all announced services that connect the TV with fixed and mobile.  Vodafone has a relationship with SKY and mobile TV is already a reality.  3’s X-Series takes Mobile TV one step further with the ability to watch terrestrial TV at will from the mobile. 

This isn’t merely good, its huge. 

But of course its still early days. 

Also copying the Internet model will be a tough call.  For example, quality is key.  Its early days for HSDPA and Skype drops out on the Internet so its likely to do the same on mobile.  What does this mean?  Well giving away Skype calls is a no-brainer.  Users will soon realize how poor the quality of the call is and will simply sign-up for 3’s own 388 GBP 15 pound per month home-grown international calls service.

This is an abstract from The Mobile Search Analyst December 1, 2006 edition.