OXFORD, United Kingdom—Sweden’s state-owned Vattenfall has called for the launch of third-generation (3G) services to be delayed until consumer demand can be more accurately measured. The company is also concerned that 3G equipment manufacturers will not have adequate numbers of terminals available until after 2003, when Swedish operators are expected to have deployed the network infrastructure.
This concern comes as two of France’s biggest cell-phone operators are pushing their government to reduce the price tag for the right to offer 3G services. Didier Quillot, chief executive officer (CEO) of Orange France, asked the government to freeze payments of forthcoming installments scheduled for next year. He said the company believed a price of about e1.3 billion (US$1.2 billion) for the license is fair, while the French authorities have set a price of nearly e5 billion (US$4.6 billion) for a 3G license.
With SFR and Orange being the only bidders for 3G licenses in France—the government had hoped to reap a massive cash windfall from at least four companies bidding—they are now looking for routes to reduce their financial commitments to 3G services. SFR has called the price of the license disproportionate compared with expected benefits, while minority shareholders in Orange’s parent, France T
