Industry Ministry makes plans to revoke Xfera licence

4 May 2006

Spain’s Industry Ministry is drafting a report outlining various ways in which the UMTS licence awarded to start-up operator Xfera in 2000 can be revoked, writes Telecompaper. The Ministry reportedly does not believe that the company will be able to comply with its deadline set to start operations by 30 June. Last month it was reported that Xfera was 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, but neither party has since commented on their progress. In the meantime, 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.

Spain, Xfera Moviles (Yoigo)