European telecom giant Vodafone, world’s largest carrier, has expressed “concern” over the fact that Apple’s iPhone, the craved gadget launched on June 29, is lacking 3G capabilities.

3G networks are dominant in major European markets like Germany, France, UK or Spain and customers are strongly attached to the download speeds this type of technology offers. The same does not apply for the US, where free Wi-Fi networks are ubiquitous, but where the implementation of more advanced technologies like 3G or HSDPA (high speed data package access- sort of a 3.75G) is far behind.

This is the compromise Apple probably had to make in order to make the iPhone successful in the US: the handheld is now using AT&T’s “degraded” EDGE network (enhanced data rate for GSM revolution- a wireless technology that has lower transfer rates and can be described as a 2.5G connection) for Internet browsing. AS to sweeten things up, Apple’s iPhone has a built-in 802.11b/g adapter that automatically searches for available Wi-Fi networks. Apple also invoked the impact 3G technologies would have on the gadget’s battery (3G wireless signals are more energy demanding).

However these features are unlikely to please European customers, who are interesting in coupling the widescreen of the phone with fast Internet access, according to Vodafone’s CEO Arun Sarin.

"The iPhone is clearly a good, software-driven device, but we're concerned about wideband area coverage. 3G (capability) is something we look forward to and hope Apple moves forward to soon," Sarin told Reuters.

Media and industry insiders have speculated upon which European carrier will get to bring the iPhone on the Old Continent, and Vodafone Group came in front in numerous potential scenarios. In Germany, Deutsche Telecom subsidiary T-mobile has been declared the winner. However, most of the Euro-carriers (including UK-based O2 or France’s France Telecom, owner of Orange brand) have expressed one way or another concern over the phone’s lack of 3G support.

Sarin confirmed that "virtually every mobile company" is in discussion with Apple over the iPhone, but refused to confirm or deny his company's involvement, saying that Apple has made no announcement on this.

"Every product, every alterative, every choice here has a price and we just have to be conscious of what it is that we're doing for our customers and our shareholders," Sarin said.