SUSAN LISOVICZ, CNN ANCHOR: The mobile phone sector has been hit pretty hard in the past few quarters, especially manufacturers of handsets. But can a wrapup for Christmas bring those companies any good cheer? "Fortune" magazine's Janet Guyon has the details from London. Hi -- Janet.</s>JANET GUYON, EDITOR-AT-LARGE, "FORTUNE": Good morning. Yes, a lot of the mobile phone handset makers are hoping that Santa Clause will arrive for them at Christmas. They're planning to introduce a new technology called GPRS, which would allow you to get the Internet over your mobile phone without dialing up and sitting there for a long period of time. However, what we think here is we think that probably GPRS won't be ready in time for Christmas, so what the mobile phone makers will sell won't be clear. The other thing that's happening in the industry which probably will not change is that the operators, people like Vodafone, for example, have been subsidizing phone sales and they've stopped doing that this year. In April, Vodafone said no more subsidies. We've got to focus on our profit margins. We have enough subscribers, we're not going to give away phones anymore and that's hurt the mobile phone handset makers. And we don't think that's going to change. And the third thing is really sort of the biggest problem the industry has in trying to get the Internet on the mobile phone and spur sales and that is that the structure has been that the operators want all the revenue from new applications on the mobile phone. That means there's no little entrepreneurs out there developing new interesting applications for Internet use of their mobile phone where they can share in the revenue stream because the operators want the whole thing. So until that structure changes and until those subsidies come back, there's really going to be no compelling reason for consumers to buy the new technology at Christmas.</s>LISOVICZ: Janet Guyon joining us from London. Thanks, Janet. TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
'Fortune': Mobile Phone Handset Makers Hope for Rally