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Two more operators push back 3G launches

OXFORD, United Kingdom—Two European operators with third-generation (3G) licenses have quietly confirmed that their services will not be ready for commercial launch this year. Netherlands-based KPN Orange and Cegetel in France have admitted that second quarter of next year and sometime in 2004, respectively, are the new estimates for the launches.

KPN Orange said difficulties in developing and deploying the network are the major reason it will not meet its commercial launch date of September 2002. In particular, it claimed it has not been granted sufficient building permits for constructing its 3G base stations. The operator also cited a lack of 3G mobile terminals as another reason for not going ahead this year. Its rival operator, Proximus, has already announced that its 3G services will be delayed.

Meanwhile, Cegetel, despite spending over e400 million (US$351 million) building its 3G network, is now not expected to enter its trial phase until the middle of 2003, with a commercial launch about 12 months later.

As a possible strategy to hasten the launch of 3G networks, other mobile operators are reported to be negotiating with satellite operator Inmarsat to open its network to 3G services, which would allow mobile users to roam on its satellite networks outside 3G coverage areas. Inmarsat, which is investing e1.8 billion (US$1.6 billion) to launch three 3G-compatible satellites late next year, has confirmed talks with cell-phone operators are under way, but that the proposed roaming idea with operators is not part of Inmarsat’s commercial plan.

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