Tapio Hintikka, the new chairman of Sonera Corporation, says the industry and regulators must start to question whether the new services can be up and running as quickly as hoped.

There have been concerns about a slowdown across the telecoms sector, with many companies burdened by debts linked to the auction of 3G licences and fears that the market is reaching saturation point. Last week, Ericsson announced a profits warning and thousands of job losses.

In an interview with the Finnish News STT/FNB, Mr Hintikka said: "The management of this debt load is central. When it comes to big UMTS projects, we should aim for plans that correspond to the development of the whole market. "

He said: "The entire industry, and legislators in various EU countries, must take a stand on whether the timetables and other conditions for the launch of these networks are reasonable, or whether they should be delayed."

Mr Hintikka also said Sonera was continuing to look for a partner for its UMTS project in Germany, which would reduce its stake in the Group 3G venture to its original goal of 20%.

He said Sonera's core business as a domestic telecoms operator in Finland continued to produce good revenue .

Mr Hintikka said Sonera's big debt load was not a cause for great concern.

"I would believe that, at the moment, our operating environment is approaching a bottom but, nevertheless, Sonera's financial plans continue to be very solidly based. The parts of the financial plan are starting to fall into place, as the telecom industry regains the confidence of the markets."

Mr Hintikka added that in the long term, the merger process in the industry was unavoidable, and Sonera did not intend to stay outside it.

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