Italy's Ipse to focus on UMTS, bypass GPRS
By Anne Young, Total Telecom
30 January 2002
Italian 3G license holder Ipse 2000 confirmed Wednesday that it will not launch
GPRS services prior to launching 3G operations, and will instead concentrate on
UMTS.
A spokesman for Telefonica Moviles, one of Ipse 2000's shareholders, told Total
Telecom that the shareholders decided at a board meeting on Wednesday to
"implement a UMTS business model for the company."
"This model is based on the preparation of a marketing campaign for Ipse 2000 to
coincide with the commercial availability of UMTS technology and services in Italy,"
the company said in a statement. "The company's activities will include the study
of strategic agreements and the search for new commercial developments in the
Italian market."
Ipse 2000's budget for 2002 will be revised to bring it into line with the business
model. The company will be financed with loans provided by Ipse 2000's
shareholders, the statement added.
"The idea is to go ahead with UMTS, looking at the possibilities for network sharing
and vendor financing," the spokesman said.
He agreed with the comment that Ipse 2000 is looking for a fast-track rollout.
It is unclear what Wednesday's decision means for a previous agreement with
Italian 2G operator Vodafone Omnitel that would have allowed Ipse 2000 to offer
GPRS services through a roaming agreement.
Ipse had hoped to offer GPRS services as a market warmup before entering the 3G
arena.
The spokesman said all shareholders are committed to the venture, quashing
previous rumors that Telefonica Moviles and Sonera would buy out other
shareholders, including Atlanet, a consortium bringing together Italian utility Acea
and Fiat-Ifil, with 12% and Banca di Roma with 10%. Telefonica Moviles holds a
46% stake while Sonera owns 13%.
It is not yet clear whether Ipse 2000 will need to implement job cuts or take any
other measures in view of its revised business plan.
However, the spokesman said there are plans to review the existing management
structure, as the current management was taken on with a view to launching
services in the near term.
It is also not clear when Ipse 2000 plans to launch 3G services, but the spokesman
said under existing requirements a 3G operator needs to cover 19 regional capitals
by July 2004.
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