Xfera Downsizes 3G Plans

July 3, 2003 - source: BWCS

The Spanish 3G licensee Xfera Moviles is reportedly in talks with one of its shareholders about the construction of UMTS networks in Spain’s two largest cities. According to the Spanish daily Cinco Dias, Xfera’s 8.36% shareholder Abertis will construct and own the operator’s 3G networks in Madrid and Barcelona. Xfera will then reportedly seek roaming agreements with one or more of the country’s other three 3G licensees to offer coverage of the rest of Spain.

According to the terms of its concession, Xfera must launch 3G services in 2004, and the company is said to be planning a launch in December of that year. Cinco Dias reports that Xfera has downsized its business plan to one-tenth the size of the original plan which dates back to March 2000 when Spain’s 3G licences were awarded. The initial optimism at the time of the licensing soon faded and both the government and the four winning bidders have been forced to rethink their 3G strategies. Besides Xfera, the 3G concessions are held by the existing GSM operators Telefonica, Vodafone and Amena.

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Xfera Downsizes 3G Plans

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