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MobilCom May Join 3G Postponement List

August 30, 2002 - source: BWCS

Yet another 3G delay may be on the cards after German mobile operator MobilCom AG announced it is reviewing its UMTS business plans. The company is said to be considering writing down the value of its investments in 3G, which includes the US$7.6 billion it paid for its licence back in August 2000.

It appears unlikely that MobilCom, which says it is looking for a “technical” partner, will launch next generation mobile phone services in 2002. This is despite the fact that it has already rented around 3,600 sites for UMTS base stations, of which approximately 25% are fully equipped with 3G transmission facilities. The company’s change of direction is thought to be down to the influence of its 28.5% shareholder, France Telecom. The French operator is believed to be preparing to take full control of MobilCom.

The German mobile company reported that its loss for the quarter ending June 30 2002 was some €172.8 million, on sales of €520 million (up from €514 million at the end of March 2002). By the end of June 2002 MobilCom had some 4.9 million mobile subscribers.

 


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