T-Mobile plans to launch UMTS services in autumn of 2003

date: January 24, 2002

An executive from the mobile side of German telecommunications giant Deutsche Telekom said T-Mobile, are planning to launch the next generation of mobile phone services using the UMTS (Universal Mobile Telecommunications Systems) technology.

Vodafone D2, arch rival of T-Mobile, hopes to launch its 3G service in Germany sometime this autumn.

Juergen von Kuczkowski, head of D2, said he did not expect to over take Deutsche Telekom for the number one position. They will concentrate on profitability to offset the enormous cost of the 3G licences and infrastuture.

Last month, Deutsche Telekom has warned it is expecting to post a loss for the year because of the amount it has paid for 3G licenses in Germany and UK but still hopes to be able to offer a share dividend. In the first nine months of the year, DT reported a net loss EUR1bn, which can be compared with a profit of EUR8.4bn for the same period last year. The loss included a EUR900m charge to cover license costs.

DT is also said to be lobbying the German government to alter the law so that if a 3G licensee faces closure rival operators cannot take over the business and effectively acquire a much cheaper license.

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