Vodafone makes new connection

VODAFONE and its American partner Verizon claim they have resolved a long-standing rift over technology for a key £40bn joint venture that dominates the giant US mobile phones market.

The dispute threatened to make it impossible for many of Vodafone's customers to use the same phone on both sides of the Atlantic. But thanks to the intervention of US telecoms equipment maker Qualcomm, the crisis may have been averted.

The rift within the joint venture, known as Verizon Wireless, came about because Verizon wanted to use US standards for links between base stations and mobile handsets.

Vodafone was upset because the American standards would not be compatible with all the handsets used by its customers around the world. But with only 45% of Verizon Wireless, it could not force its US partner's hand.

Qualcomm has now promised to make a circuit board for mobile phones that will recognise older versions of the US and European standards by 2003. 'In principle this shows that it can be done for 3G,' a Vodafone spokesman said.

Still, the technology is unlikely to be available to the first users of 3G phones. Additionally, the venture may not be able to build its networks as cheaply as it might have, had it lumped its equipment orders with others.