* Everything Everywhere, Vodafone, O2 set up joint
* Move builds on mobile payment momentum driven by Google
* Three UK is only operator not to join
(Adds comments from Three, JV executives, background)
LONDON, June 16 Britain's top wireless carriers
are creating a joint venture to speed up deployment of mobile
payments and marketing, which will let shoppers pay with phones
instead of cash or cards and also get coupons and advertising.
Orange-T-Mobile joint venture Everything Everywhere
(DTEGn.DE), Vodafone and Telefonica's
O2 said on Thursday they aimed to create a mobile commerce
system bringing together retailers, banks and advertisers.
Momentum is growing for services that let shoppers purchase
small items by tapping their phone against a reader at the till,
supported by chains like McDonald's and Macy's and
driven by new technology in Google Android phones.
Last month, Google, Mastercard , Citigroup ,
Sprint and First Data unveiled an m-commerce service to
start in U.S. cities this summer .
Mobile payments are already widely used in Japan and South
Korea, and in developing countries where many people do not have
"The mobile phone has become the one item people really
cannot be without," Guy Laurence, chief executive of Vodafone
UK, said in a statement. "In the near future, people will now
start leaving their wallet at home."
The three operators did not immediately announce any
partners in retail or banking, saying they first had to gain
regulatory clearance and hoped to launch the venture before the
end of the year.
Hutchison Whampoa's Three is the only operator
that is not part of the venture in the UK, which is Europe's
most developed market in terms of smartphones.
"We would want and expect to be at the heart of a
cross-industry development like this and are more than a little
concerned that -- as a core competitor -- we have been excluded
from this joint venture," Three UK's CEO Kevin Russell said.
NXP Semiconductors , the world's biggest maker of
the NFC chips that enable the contactless payments, expects 20
NFC-enabled phone models to be on the market by the end of the
year, driven by the fast-growing popularity of Android.
The UK operators also aim to provide a single point of
contact for retailers and advertisers to deliver virtual loyalty
cards, discount coupons and advertising.
The three CEOs told journalists on a call they had already
had significant expressions of interest from advertisers.
UK-based wireless research and analysis firm CCS Insight
said: "Backing from financial institutions and retailers is
crucial, and unified support for on-device advertising will
increase its appeal."
Orange has already launched a limited mobile payments scheme
in Britain with Barclaycard .
The three operators said the joint venture would not affect
plans that any one of the three had for independent services.
In Spain, Telefonica recently signed a deal to collaborate
on NFC with Orange and Vodafone.
(Reporting by Georgina Prodhan; Editing by Jon Loades-Carter
and Jane Merriman)