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Spanish 3G Operator Denies Licence Sale

January 15, 2003 - source: BWCS

Spain’s new entrant 3G operator Xfera has denied persistent rumours that it is looking to sell its UMTS licence. Last week the Spanish government gave the green light to spectrum trading and this was seen by some as offering Xfera an easy exit from the 3G market. However, according to weekend reports in the Spanish press, sources at Xfera have discounted this option and have also thrown out the possibility of becoming a 3G virtual operator on Vodafone’s network.

Since October 2001 investments in Xfera’s 3G operations have effectively been on hold. The company is thought to be waiting for 3G technology to mature and become widely available before rolling out services. In the meantime Xfera, which is backed by a consortium including Vivendi Universal, was expected to launch GPRS services via an MVNO agreement with Vodafone but has yet to do so.

In an effort to speed up the deployment of 3G services, in December the Spanish government freed up €5 billion of deposits made by the UMTS licensees. In return the four operators have agreed to launch trial 3G services during the second half of this year and commercial services by the third quarter of 2004.

 


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