(Length: 7 pages)

Executive Summary (This is a document excerpt)

Today, 3 UK commercially launched the X-Series mobile Internet service. Consumers will get cheap flat-rate Internet access and access to a number of preloaded applications on their phones that will connect to the Internet — including Skype, Yahoo!, and Windows Live Messenger. We think this is a good move because consumers get access to some of the most-used online applications for free, without having to browse or download them. The service also complements popular existing Internet services instead of trying to compete with them. Although we expect few operators to follow 3's example in the short term, the fixed Internet business model will spread to mobile over time. To be successful with the mobile Internet, operators will need to follow 3's example by opening up, introducing flat-rate data access, seeking partnerships, and actively engaging with their subscribers to improve products and services.