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No 3G Big Bang, mobile firms warn

The German subsidiaries of mobile rivals Vodafone and mmO2 said last night that they did not expect a mass market for high-speed, new generation services before 2004.

The comments were made on the eve of CeBit, the world's largest computer and telecommunications fair being held in Hanover, Germay.

The head of Vodafone Germany said that although the group planned to pilot third generation (3G) mobiles this autumn, it could take another three years before the service really takes off.

'There will be no Big Bang. GSM services will long remain our core business,' Juergen von Kuczkowski said.

His mood was echoed by Rudolf Groeger, the chief executive of British-based mmO2's German subsidiary Viag Interkom - the number four in Germany with a 7% market share.

Equipment suppliers are struggling to appease market concerns that technology glitches will further delay operators' attempts to recoup some of the €100 billion 3G investments by promptly bringing to market new handsets.