MobilCom not to team up in 3G network

date: January 28, 2002

It has been reported that MobilCom, a 3G UMTS licence owner in Germany have rejected plans to team up with local 3G licence holders in rolling out the first phrase of 3G network due to technical issues.

Telefonica/Sonera joint venture Group 3G and the KPN-backed E-Plus were rumoured in the collaboration.

"Installation of the network is going according to schedule," says MobilCom chairman Gerhard Schmid. "We are therefore confident of being able to meeting our early launch date. (late 2002)"

Last month, MobilCom announced it is delaying launching 3G services from the previous target of mid2002 until the autumn with 25% population coverage rate in Germany required by the licence agreement. Gerhard Schmid, chairman, blamed the delay on the arrival of handsets in Q3 2002. The company also disappointed the market with a Q3 net loss of EUR42m on revenues of EUR609m.

The German government auctioned six UMTS licences in mid-2000, with the winning bidders paying a total of almost DM100 billion (US$46.1 billion). The winners included D2 Vodafone, Deutsche Telekom's T-Mobil, Viag and Quam.

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