DUSSSELDORF, Germany-Gloomy news from German company MobilCom has furthered the expectation of delayed UMTS service in Europe and Germany specifically. The company, which is partially owned by France Telecom, released its second-quarter results, which included the announcement that it is reviewing its UMTS business plans.
The company holds a UMTS license in Germany, where it currently resells mobile service from other operators.
“The company is at present reviewing its UMTS business plans in the light of changed market conditions. We will take concrete action in the third quarter on the basis of the conclusions reached. In all probability, this will include the revaluation of the UMTS license.”
MobilCom said it has rented about 3,600 sites for UMTS base stations, of which 1,800 already have the necessary buildings and electrical installations. However, the company added “the conditions for a commercially successful start will be difficult to fulfill,” citing a lack of efficient, low-cost handsets and demand for mobile data services.
The German UMTS market may not be as crowded as first expected. In addition to MobilCom’s potential withdrawal from the market, Telefonica Moviles and Sonera, which jointly own newcomer Quam, said in July they would end investments in the venture, which also owns a UMTS license in Germany.
France Telecom and MobilCom have been battling for several months regarding majority control, funding and the direction of MobilCom’s UMTS operations, among other issues.
