OXFORD, United Kingdom—Having paid e3.3 billion (US$2.8 billion) for its third-generation (3G) license, the Italian cell-phone operator Ipse is becoming increasingly concerned that the Italian Telecom Ministry might withdraw the license unless it sees a firm commitment to launch a service. The government has indicated that any delay of longer than a few weeks would be considered a breach of contract, and it would have the rights to revoke the 3G license without compensation.
The worries facing Ipse have been provoked by its shareholders failing to agree on financing for the deployment of the 3G network and the likely uptake of services. The company had proposed delaying the project and reducing staff numbers until it could find the necessary funding, using the excuse that it would launch once the first commercial 3G services are up and running and there is a more positive outlook for high-speed data.
Ipse’s shareholders, of which Spain’s Telef
