European Wireless Operators Downsize 3G (W-CDMA) Business Plans To Improve Cashflow

date: October 31, 2001

European wireless operators have slowed deployments of W-CDMA network rollouts to help ensure availability will not exceed demand and to improve cashflow positions. A combination of many factors is cited with regard to the slowdown in these network deployments. Operators like Sonera, a Norway-based wireless provider, have scaled back network deployments to improve cashflow, and they hope to develop network-sharing relationships to reduce capex (capital expenditures).

To enable operators to compare their performance with other operators and to better evaluate the commercial viability of W-CDMA networks being deployed, The Strategis Group has developed an interactive application, "The European 3G Investment Appraisal Toolkit." The product is a fully interactive and customizable resource that enables end users to perform their own cashflow and risk assessments for any class of operator (dominant, incumbent and new entrant) within in any one of 31 individually profiled European markets.

"This unique product allows the end user to manipulate data, to produce data sets and to develop models to meet individual need," states Jamie Moss, senior analyst at The Strategis Group. "This next-generation product delivers unparalleled levels of functionality, and it is backed by a database of underlying licensing, equipment pricing and rollout assumptions, unmatched in terms of detail and accuracy."

The Strategis Group's application, "European 3G Investment Appraisal Toolkit," provides consumers with an interactive front-end product, utilizing Excel, to calculate performance metrics. The product allows end users to build customized tables to extract the following information:

* Key Market Indicators -- market size, operator penetration profiles and W-CDMA launch dates.
* Revenue Inputs -- service revenue calculations (ARPU) and handset revenue calculations.
* Operating Expenses -- commissions and interconnection fees.
* Capital Expenditures -- licensing, collocation and infrastructure.
* Cashflow Analysis -- discount rates, NPV and IRR.

For more information about the future of W-CDMA in Europe, please contact The Strategis Group.

http://www.StrategisGroup.com

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