Versatel would have gone sooner with 3G license

date: June 26, 2002

A one time 3G hopeful, Versatel Telecom from the Netherlands, has proved that either with or without a 3G license some telecoms operators are destined for trouble.

The fixed line, broadband service provider has filed for bankruptcy protection to speed up the conversion of its substantial debts to equity.

Had the company won a 3G license, it is claimed that its debts would have been even higher and could have brought the company down even sooner.

Such a collapse of a 3G license holder could have had a negative impact on all the other license holders.

However, the lack of a 3G license can not be held responsible for the firm's current woes, instead the massive overcapacity in the European broadband market has been blamed.

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