European Operators Between A Rock And A Hard Place

BusinessWeek has a great summary of a Nomura report on wireless infrastructure. The key point is that Euro operators expected 3G sooner than later and oversold their 2G network capacity. Now subscribers are experiencing a drop in network quality. Which not only upsets users but more importantly makes them less confident on new wireless data services. And since carriers are in such debt they can’t afford to make moves that would increase capacity in the interim. This situation could have profound effects on Europe’s wireless economy especially for already hurting companies like Nokia and Ericsson. Maybe this will help carriers with their efforts to lobby the European Commission for some help.

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