Orange finds it difficult to get vendor financing

date: May 19, 2001

A telecom analysts said on Saturday, Orange may find it impossible to get vendor financing backing, estimated to be £1.5billion to built a 3G wireless network in Sweden.

Orange is burdened with debt in exceeded of up to £6billion from buying up 3G licenses in Europe alone. Banks already refueled to lend operators the kind of money required to rollout the 3G networks without knowing the project would be a succeeded.

Analysts said, Orange does not have a great business model without any GSM customers, it will need to start from sketch; with a population of only just nine million and regulator requirement of "very mile" geographical coverage, it will result in an non-profit operation.

Orange already has vendor contracts with Ericsson, Nokia and Alcatel, but supplying the company with financial backing is another matter, said the analysts.

Mobile makers such as Nokia had negative cash flow last year.

Orange won a 3 license in Sweden on December along with HI3G Access, Europolitan, Tele2 AB. All four operators are hoping from the Swedish government to be allowed to share out the cost of building the 3G network.

Top Sellers at our online store

1.	NEC e606 on 3
2.	Orange Nokia 7250i
3.	O2 Samsung A800
4.	NEC e808 on 3
5.	Motorola A920 on 3

last updated: January 12, 2004

Visit our online store, click here

3 phones

3G Motorola A920
Available Now! Superb full colour touch- sensitive screen with a built-in digital camera for Video Calling.
Buy now from Free

M-Profits: Making Money from 3G Services
ISBN: 0470847751

This book discusses 3G services from the view of what is needed for the service to provide value to the user, what is the value proposition for the user, how will money be made out of delivering the service, and discussions on how revenue sharing propositions might work to benefit content providers and network operators. 3G operators should take note of this highly recommended book.

buy it UK | USA

3G Books to Read!

top