This is what Dow Jones has to say about the latest from Finland. And, remember, China is watching. Can't be good for Nokia's wCDMA chances in China if Nokia can't produce enough handsets to get a network launched on time in its own backyard. I suppose they couldn't extract the now-you-see-it-now-you-don't handset from the guy's pant's pocket:
Sonera Postpones UMTS Commercial Pilot To 1st Quarter 2003
Friday August 30, 8:00 am ET
STOCKHOLM -(Dow Jones)- Finnish telecommunications operator Sonera Corp. said Friday that it will postpone the commercial launch of its third- generation UMTS mobile network until the first quarter of 2003.
Sonera had previously announced plans to open its 3G network for commercial service on Sept. 26. It said it now plans a "limited commercial pilot" in the first quarter of 2003.
Sonera said it will offer 3G services on Sept. 26 through its existing mobile network.
It blamed the delay in the commercial launch of the network on delays in the development of UMTS technology.
Sonera said more widespread UMTS services on the network would begin in 2003 as soon as there are enough 3G terminals on the market and it is "feasible in view of the maturity of the network technology."
It reiterated that it expects 3G to become more meaningful in Finland in 2004 and 2005.
The decision by Sonera - Finland's largest operator and once one of the most eager believers in 3G's potential - to delay the launch is yet another setback for the next-generation network technology.
European operators committed billions of euros in 1999 and 2000 to secure licenses for the new networks, which are expected to allow streaming video and mobile Internet services to be provided easily over mobile phones.
But lately, operators have been in retreat, amid doubts about the near-term potential of the new wireless services and delays in the development of 3G technology.
Sonera and Spanish partner Telefonica SA (TEF) recently shut down their German 3G venture and took a combined charge of more than EUR9 billion to write off investments outside their respective home markets.
The Swedish unit of Orange SA (F.ORA), meanwhile, has asked Swedish regulators to delay the deadline for completing its 3G network to 2006 from 2003, citing in part the uncertain demand for the new services.
Last week, Dutch operator KPN NV (KPN) took a total of EUR9 billion in write- downs related to its 3G investments outside its home market, and said it would seek to sell its 15% stake in the U.K. unit of Hutchison 3G, the Hutchison- Whampoa Ltd.-backed (H.HUW) operator that has been an aggressive 3G investor.
Nokia Corp. (NOK), the world's largest maker of mobile phones and a Finnish counterpart of Sonera's, is scheduled to unveil its first 3G phone Sept. 26. Sonera's launch of commercial services was timed to coincide with the Nokia unveiling.
Sonera has had a test UMTS network operating in Helsinki, Tampere, Turku and Oulu since the beginning of the year.
Telia AB , Sweden's largest operator, has agreed to take over Sonera. The companies have said the deal is expected to close early in the autumn. |
