OXFORD, United Kingdom-As Europe’s mobile operators rush to pay for licenses and third-generation (3G) equipment, concerns are surfacing the equipment developers may not be able to deliver the volume of infrastructure technology within the specified time frames.
Industry analysts claim the tight time schedules and number of networks that have to be built will cause significant headaches for the manufacturers and are presently being underestimated. One research firm estimates about 60,000 3G base stations are scheduled to be installed in 2001 and about 135,000 in 2002. While some potential 3G operators have imposed severe contractual penalties on late equipment deliveries, some manufacturers are thought to have negotiated get-out clauses.
However, due to the financial pressures operators are under to deploy commercial 3G services, it seems likely that threatening legal proceedings would only damage the vital operator/manufacturer relationship.
