Mobile phone company Mm02 said today that it might delay its launch of high-speed, third-generation (3G) mobile phone services by a few months until around November.
Chief Executive Peter Erskine said the company, which had previously said it planned a German 3G launch in the late summer, was now set to bring the high-tech, multimedia phones to Germany by 'late Autumn'.
Mm02, the smallest of Germany's four mobile phone operators, has already delayed its 3G launch in Britain to the second half of 2004 after harsher-than-expected regulatory price cuts forced the company to rein in investment.
Mm02 has adopted a 'go-slow' 3G investment strategy in Germany, which has already seen two rivals put costly 3G start-up operations on ice. But the British group plans to meet regulatory requirements and ensure that its 3G network reaches 25% of the population by the end of this year.
Although mm02's German unit has beaten market forecasts by reaching positive EBITDA (earnings before interest, tax, depreciation and amortisation) six months ahead of guidance, it remains loss-making.
Some analysts still believe mm02 might sell the business, which has only around 8% of a market that is 80% controlled by Deutsche Telekom and Vodafone , possibly merging it with Dutch-owned rival E-Plus.
Mm02 insisted last week that an extended 3G German network-sharing deal with Deutsche Telekom's T-Mobile did not commit the group to a specific strategy in Germany. But analysts interpreted the move as an indication that any prompt sale looked less likely and mm02's shares fell.
