Vodafone launches 3G phones in Spain, Italy

Confirming a Reuters report, Vodafone said Tuesday that the new phones also will offer advanced video clip services, as well as improved ring tone offerings and fresh content.

Vodafone began a limited sale of third-generation (3G) phones in Germany and Portugal earlier this month, although it only plans a full commercial launch in Europe in the autumn, when it has said it expects "millions" of handsets to be in the shops.

Vodafone Espana said it is launching UMTS (Universal Mobile Telecommunications System) services in the largest 22 cities in Spain.

Rival Telefonica Moviles, which launched its own 3G operations on Monday, said it will initially offer UMTS services only in Madrid and Barcelona.

Vodafone said it will provide 3G services via Samsung's Z105 handset initially and will later incorporate Sony Ericsson's Z1010 handset.

The Samsung handset will cost 599 euros, a company spokeswoman said.

Vodafone said its 3G clients will have roaming capability in seven European countries--Portugal, Germany, Italy, Sweden, the United Kingdom, France and Greece--plus Japan.

The group has already launched 3G phones in Japan. But Vodafone conceded on Tuesday that its Japanese business had managed to clinch less than 1 percent of 3G customers by March 2004 as it awaits new handsets due toward the end of this year.

Vodafone earlier reported a 13 percent rise in core earnings to $22.8 billion on 10 percent higher revenue of 33.6 billion, but results disappointed a market that had hoped the company would exceed forecasts.