14 DAY TRIAL // After all the speculation regarding the possibility of Apple enabling 3G in the iPhone via a firmware update, it looks like things have swung in the opposite direction. According to a Gartner Inc. analyst, the European version of the iPhone will also function over the EDGE networks as well as in Wi-Fi hot spots, the same as in the U.S., and will have no 3G capabilities.
According to Carolina Milanesi, the first European version of the iPhone "definitely will be on EDGE." Apple has said that it will be shipping sometime in the fourth quarter and many suspect that it could be as soon as October. Milanesi claims that she first learned about the EDGE networking of the European iPhone from 'people working on the device in Taiwan,' and says that it is 'common knowledge' that it would use this network before ever being able to handle the faster 3G networks.
In the case of the 3G firmware update, it was argued that it makes more sense for Apple to make all iPhones 3G capable and enable the functionality only where needed, instead of making two different versions. This same logic applies here, and Apple could very well use the same hardware everywhere, relying on the fact that users will want the device despite the slower network speeds.
In this light, Milanesi comments that a 3G-ready iPhone for Europe could ship in March 2008, running over Wideband Code Division Multiple Access (WCDMA) networks in the range of 350Kbit/sec. to 700Kbit/sec. for download speeds, which would make a lot of sense and would be a natural upgrade for all iPhone users.
At this point, there is no way to be sure, but even if Apple were to make such a gamble in Europe, it would be a much harder sell in Japan, where users are not as likely to overlook the lower network speeds. On the other hand, the availability of WiFi hotspots is also an important factor, as in some areas one would never even have to use the EDGE network.