Inquam could upstage 3G in Europe

date: October 27, 2001

Europe's mobile phone operators could face their first serious challenge from a rival technology standard following a rescue bid for a struggling operator called Dolphin Telecom.

The company owns radio spectrum in France and the UK, which has attracted the attention of a consortium backed by US electronics group Qualcomm.

The Qualcomm and Omnia, an investment fund-backed venture, called Inquam, hopes to use Dolphin's radio spectrum to offer mobile voice and data services aimed at business users.

This would use the CDMA standard, which has failed to take off in Europe where GSM is dominant instead.

Inquam is understood to be planning a relatively slow roll-out of CDMA technology in Europe if its Dolphin bid proves successful. It is also keen to focus only on a niche market for certain business customers.

Nevertheless, the threat of CDMA services using relatively cheap spectrum could come as a shock to existing GSM operators which have spent more than $89billion acquiring new spectrum to run 3G services.

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