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Spanish 3G Operators Seek Deposit Refund

September 23, 2002 - source: BWCS

According to reports in the Spanish press the country’s UMTS licensees are lobbying the government for the return of deposits worth €6.9 billion. Unattributed reports in the Spanish newspaper Cincos Dias stated that the four 3G operators are seeking negotiations with the Science and Technology Minister Josep Pique over their licence deposits.

Pique has already freed the deposits of cable television operators and public mobile radio operators, and the UMTS licensees are now hoping that he will extend this relaxation of licence terms to them. Like their counterparts around Europe the four Spanish UMTS licence holders - Telefonica Moviles, Vodafone Airtel, Xfera and Amena – are desperately in need of capital to fund the rollout and launch of their 3G networks. The Spanish government has already twice been forced to push back its deadline for UMTS coverage of the country’s 23 largest cities due to delayed network rollouts and handset shortages.

Following the US$446.5 million auction of its 3G licences, the Spanish government came in for criticism that it sold the concessions too cheaply. As a result it introduced a radio-spectrum tax, which fell mainly on 3G operators. However, in September 2001, as it became clear that operators around Europe had in many cases overpaid for their UMTS concessions, the government cut this levy by 62.5%.

 


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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.

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