7th October 2005 - T-Mobile International AG, the mobile telecommunications arm of Deutsche Telekom AG (DT), Wednesday launched a mobile Internet service called "web'n'walk."

The service will provide consumers with full Internet access, enabling use of e-mail, instant messaging and on-line purchasing from a mobile phone.

It will charge GBP9 for 40 megabits of data usage a month, which equates to around 2,500 e-mails or 500 Web pages.

The company said its long-term aim is to have total Internet usage to displace fixed-line usage.

The company also said the 2006 launch of HSDPA -a technology which speeds-up third-generation networks -will drive speeds above the average home fixed-line broadband Internet speed.

T-Mobile said there will be three tariffs available, at GBP30, GBP38 and GBP55 a month, all of which include 40 megabytes of data download but offer different levels inclusive voice minutes.

The mobile operator launched five devices for "web'n'walk" and said it will have a range of eight devices by Christmas. The range includes the MDA Pro smartphone which can use second-generation, third-generation and wi-fi networks; all the handsets have large color screens to help Internet browsing.

T-Mobile U.K. Managing Director Brian McBride told a conference call of journalists that the Internet service has already been launched in Germany, but following the U.K. launch, will be rolled out across T-Mobile's footprint.

He said mobile Internet to date has been "slow, difficult to navigate and expensive," but believes there will be more mobile Internet usage than on fixed-line, "in time."

He said he believes 40 megabytes of data a month is equivalent to "all you can eat."

McBride said he expects "hundreds of thousands," of people to begin using mobile Internet over the next couple of years.

McBride said the company will spend under GBP10 million in a marketing push to promote the service.

He added the company is planning a review of its contract tariffs in the U.K. early next year.

He declined to comment on Deutsche Telekom's talks with KPN NV (KPN) about acquiring O2 PLC (OOM.LN) earlier this year, which would have resulted in a merger of T-Mobile U.K. and O2 U.K.

He said: "There are no further discussions in place. That offer is off the table." He added T-Mobile U.K. is focusing on organic growth.

Mobile Internet services form a crucial part of mobile operators attempt to increase data revenue, as opposed to voice. Last week, O2 unveiled its i-mode mobile Internet service, while Orange, France Telecom SA's (FTE) mobile arm, is bundling its mobile services with the Internet services of sister company Wanadoo.

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