MADRID, Spain—Xfera, one of four companies in Spain with a Universal Mobile Telecommunications System (UMTS) license, unveiled plans to lay off 25 percent of its work force due to further delays in launching third-generation (3G) services. The company, which is controlled by FCC-Vivendi and ACS, will shed 150 jobs out of a total of 600.
Since its founding in March 2000, the company has not offered existing mobile-phone services, opting instead to bank on UMTS. With e180 million (US$164.9 million) invested and a e150 million (US$137 million) radioelectric spectrum tax looming in 2001 and e35 million (US$32 million) in 2002, the outlook for the company is unclear.
Xfera had considered offering General Packet Radio Service (GPRS) services using Airtel’s network, but that was shelved in favor of job cuts. Further cuts could be in the offing as the company is said to be considering ceasing operations for now with the hopes of resurrecting itself once 3G becomes commercially viable.
Should Xfera fold, the remaining 3G licensees in Spain would be Telef
