Printed from http://www.electronista.com

O2 may see $79.6m fine for slow 3G growth

updated 01:35 pm EST, Wed February 27, 2008

O2 Faces 3G Fine

British phone carrier O2 could pay as much as 40 million ($79.6 million US) for failing to build out its 3G cellular data network on time, the country's Office of Communications (Ofcom) noted on Wednesday. Despite its role as the single largest provider in the region, O2 is the only one out of five firms granted licenses for 3G access that did not supply at least 80 percent of the UK population with the faster network by the end of 2007.

While currently close to that figure at 75.7 percent, the company is well behind rivals such as Vodafone UK and now has until June 30th to at least reach the 80 percent mark without suffering both a termination of its 3G license four months early and the resulting fine.

O2 itself says there should be no difficulty reaching the target but justifies the comparatively slow expansion by claiming that it has focused chiefly on pockets of high demand rather than sheer population numbers. In areas where subscriptions were high, the company reportedly spent extra time ensuring strong enough 3G coverage indoors as well as out. There are also more 3G subscribers on O2 than on other carriers, O2 stresses.

The buildout is believed to be crucial for O2, which itself is poised to drive the adoption of 3G in Britain through sheer numbers. The company is the sole sanctioned carrier for the iPhone in the country and is expected to need sweeping coverage to support a 3G-capable iPhone expected later this year.



By Electronista Staff
Post tools:

TAGS :

toggle

Comments

Login Here

Not a member of the MacNN forums? Register now for free.

toggle

Network Headlines

toggle

Most Popular

Sponsor

Recent Reviews

Epson PowerLite Home Cinema 2030 projector

With high-definition televisions now the standard, 4K televisions becoming the next big thing, and plasma TVs going the way of the din ...

Life n Soul 8 Driver Bluetooth headphones

When it comes to music on the go, consumers generally have some options to consider when looking for the best experience. While Blueto ...

Tesoro Tizona G2N Elite gaming keyboard

The market for gaming keyboards is getting crowded, starting off with some fairly simple keyboards and diverging into the land of modu ...

Sponsor

toggle

Most Commented

 
toggle

Popular News