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View Full Version : O2 asks OFCOM for more time to rollout 3G


A1c
17-11-2004, 07:39 PM
Mobile operator O2 is urging telecomms regulators to be more flexible over tough rollout targets for 3G networks.

Operators are expected to build out networks so that they cover 80 per cent of the UK population by 2007. Even though it remains confident of meeting this deadline, O2 wants Ofcom to give operators more room for manoeuvre. "We always want maximum flexibility in a business. It doesn't mean whether we will or won't go for the coverage. But it does give us another option," 02 chief executive Peter Erskine said today.

O2 is in talks with the regulator over the issue. Erskine expects other network operators to share similar concerns "given the technology [3G] is some three years late". O2 reckons 3G won't be ready for the mass market until Christmas 2005 so Ofcom ought to be pragmatic about imposing arbitrary rollout deadlines.

German regulations on 3G build-out are far less exacting than those in the UK. The country's four 3G operators have until the end of next year to build a network that can serve 50 per cent of the population. O2 is well on track to meet that timescale, Reuters reports.

Mobile operators see the greatest potential for recouping the huge outlay they forked out on buying licences in concentrating on cities, areas where the greatest pent-up demand for high speed data access over mobile phones is most likely to exist. Ofcom is yet to respond publicly to O2's overtures.

Erskine’s comments came as O2 announced higher than expected sales and plans to issue its first dividend. O2 reported revenues for the six months ending 30 September of £3.285bn, 23 per cent up on the £2.680bn it recorded during the same period last year. Customer growth and higher per user spending in UK, Germany and Ireland were cited by O2 as the main reasons for improved sales this year.

encoderX
17-11-2004, 08:07 PM
Hi 3GSU

I have just got home from work to see this reported.

I must admit I am very disappointed and it is quite a negative line from o2.

I can understand o2 to some degree as now there's 2 3G operators on the go and in my opinion o2 have always been the least enthusiastic at moving with 3G.

I can see Voda 3G's business strategy in this with concentration on cities where the greatest demand is as opposed to three's strategy of more coverage (not depth).

It's depressed me as I was pinning my hopes at having ago with o2 3G sooner rather than later - a long wait is now envisaged :(

Great you posted the news however - appreciated.

A1c
17-11-2004, 08:57 PM
Just be careful!

Sometimes some of these requests are 'window dressing' and are designed to deliberately confuse compeditors!

It's all very interesting but lets see what actually happens....