The UK mobile market is still growing fast. As of March 2002 there were over 46 million subscribers, an increase of 7% on the previous year. The 50 million subscriber mark was passed in March 2003.

The four GSM operators (Vodafone, O2, T-Mobile and Orange) were joined in March 2003 by the first 3G operator, "3". The other operators expect to roll out their 3G networks in 2004. 3G is the next generation of mobile phone technology and offers far greater capability in data transmission and new services such as video clips, photomessaging, e-mail, games and information services.

This development makes the UK one of the first markets in Europe to launch a 3G service and it is a clear vindication of the Government's strategy to increase competition by bringing a new entrant into the market which is dependent on 3G for its success (3 have no GSM network to fall back on). In turn this means the existing operators cannot delay their own 3G launches or they face the real risk of losing market share. This is in marked contrast to elsewhere in Europe where the economic downturn has led to some operators deferring 3G.

Some 30 million subscribers use "pay-as-you-go" mobiles. This allows all sectors of society to access mobile telecommunications and to enjoy the benefits this brings. As such, mobile phones are one of the most inclusive technologies. An important factor in the growth of pay-as-you-go has been the emergence of the "virtual" operators, such as Virgin, who now have 2 million subscribers. Although they have no network of their own and rely on one of the five main operators to carry their service, virtual operators do offer subscribers yet more choice in the market.

The Government is also encouraging the use of Wi-Fi. Deregulation has allowed public network operators to use certain parts of the spectrum which are exempt from licensing for Wireless LAN (Wi-Fi) type systems. Initially only personal use was permitted in these bands, but this has now been expanded to full commercial service. There are already several thousand "hotspots" in coffee shops, transport hubs and hotels in the UK while Inspired Broadcast Networks have announced plans to provide commercial Wi-Fi services at 1,000 locations by the end of June this year, and at 3,000 sites by the end of 2003.