THE COMPANY’S FOUNDER and chief executive, Irwin Jacobs, told the Financial Times in an interview published on its website that third generation services currently in development were not likely to be commercially viable until late 2004 or early 2005.

“I hope W-CDMA (wideband-CDMA) will be commercially viable next year but I don’t think this is a reasonable estimate at this point. I think you won’t get significant volumes until 2004 or 2005,” Jacobs said.

His comments are likely to intensify concerns that European operators are being over-optimistic when they suggest third generation, offering new Internet and video services, will be ready for 2002 onwards.

They are also likely to increase the drain on operator’s funds, given many are already paying for unused radio spectrum earmarked for the services.

Jacobs’ remarks echoed those made on Thursday by the head of Alcatel’s mobile phone business, Michel Rahier, who told a Cannes mobile communications conference that third generation handsets were likely to reach the public in late 2003 or early 2004, a year behind forecasts.

“The roll-out of 3G will take three to five years from now, whereas last October we were saying two to three years. We’re looking at end-2003, early 2004,” Rahier said.

After WAP phones failed to grab consumer attention last year, industry watchers are worried that a delay in high-speed mobile services could further dent the battered telecoms sector, which is laden with debt and fending off questions about when mammoth 3G investments will pay off.

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