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Mobilcom returns 3G license

December 28, 2003

German 3G license holder Mobilcom handed back its 3G mobile license last week to the telecom regulator RegTP. The operator froze rollout of 3G networks last year after its founder and former boss, Gerhard Schmid, fell out with the company's key shareholder France Télécom which left Mobilcom with Euro 7 billion in debt.

The license would have been taken away in January next year because Mobilcom failed to meet the minimum service area coverage as require by the license. Mobilcom wrote down the value of the license to zero and sold parts of its 3G infrastructure to rival E-Plus earlier this year.

Mobilcom said in a statement that they would now be able to offer 3G services as a reseller, operating mobile services on another operator's network. It would not have been possible for the company to do this if it held on to the license.

The regulator will also recall the 3G license held by Quam, back by Spain's Telefónica Móviles, which has frozen its rollout and unable to meet coverage requirements.

Germany is now left with four 3G operators, Vodafone, Deutsche Telekom, E-Plus and O2. Vodafone has launched its 3G service but only to selected corporate users. The service is aimed at laptop users and uses a 3G wireless card for connection to the network. No 3G handsets are available at the moment and the average consumer will have to wait until 2004 before they get their hands on a 3G phone.

German 3G licenses were sold for around Euro 8.5 billion back in 2000. Mobilcom will be looking to reclaim as much as Euro 7.14 billion from the regulator. They have asked lawyers to see whether the 3G licence could be defined as a service rather than a product. As a service, Mobilcom could argue that it had used the service for only 3 of the 20 years for which the licence was valid, and should be compensated for the services that it did not receive.

 


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