Xfera looking to seal last ditch deal with Orascom, papers say

12 Apr 2006

Spanish 3G start-up operator Xfera is in talks to form a strategic partnership with Egypt’s Orascom Telecom in a last ditch attempt to get its UMTS network up and running, according to local news sources. Earlier this month the Industry Ministry reportedly began legal moves to remove Xfera’s 3G licence because it does not believe that the company will be able to comply with its deadline set to start operations by 30 June. Xfera said it would lower its investments and freeze the development of its network, as well as reduce its workforce in an attempt to cut costs following its unsuccessful quest for a strategic partner. Talks with Hong Kong-based Hutchison Whampoa amounted to nothing, but Xfera says it will continue to look for an alliance with three potential interested parties.