MmO2 seeks to ease its 3G obligations in Germany
FRIDAY AUGUST 9 12:00AM
THE DAILY TELEGRAPH(LONDON)
COPYRIGHT 2002 TELEGRAPH GROUP LIMITED
MMO2 is lobbying the German telecoms regulator to consider a relaxation of the
terms of its third generation licence, in the latest setback to the development of
high-speed internet services over mobiles.
The UK-based operator, which demerged out of BT Group last year, is under
pressure to stem losses in Germany, where it is the fourth player in an
overcrowded market.
Under the terms of its licence there, it must build a high-speed network that
covers 25pc of the population by the end of next year and half of the country by
2005.
However, sources say equipment glitches, handset delays and a sizeable
reduction in expected demand have made the deadlines unrealistic.
A City source close to MMO2 said: "Their official position is that they are
committed to meet their roll out obligations but they don't really think they are
as commercially driven as they did when they won the licence in 2000.
"The ideal situation would be that the roll out obligations are changed to match
commercial reality so that theoretically the targets could be changed."
He added that "a couple more years would be ideal for them."
The news follows a similar approach made to the regulator in Sweden this week
by MMO2 rival Orange, which asked for a three-year extension to its construction
deadlines.
Orange has also brought the issue to a head in Germany by putting its 3G
programme on hold while its debt-laden parent France Telecom tries to resolve a
dispute over the high cost of the investment. As a result, and because of last
month's decision by Spain's Telefonica and Finland's Sonera to scrap plans to
develop a 3G network in Germany, MMO2 and, it is thought, third player E-Plus
are asking the regulator for clarity.
They want to know whether it will take action to force the two new entrants to
meet their obligations, and have seen the developments as an opportunity to
lobby for an easing of their own terms.
Some analysts say MMO2 should exit Germany altogether. The country is
Europe's largest mobile market but is dominated by Vodafone and T-Mobile, who
share 80pc of the market.
Fanos Hira, telecoms analyst at Bear Stearns, said: "The viability of the German
business is extremely suspect, so it has ultimately to make an exit or tie up with
another player."
Meanwhile, Vodafone announced yesterday that it has no plans to sell third
generation handsets in areas other than Japan because of a severe shortage of
suitable handsets.
This suggests that the largest of Britain's mobile phone companies will delay
until at least next year launching 3G services in Europe.
wirelessweek.com
==========
... next? |
