The name is absent



mobile phoning at the end of 1999 and the first months of the year 2000 by looking
at the Vodafone-Mannesmann takeover (see below).

The third group of important actors in this fundamental boom and crash have been
the banks, especially the investment banks, the analysts^ the media people who
generated the public feeling of endless success and also the national state
governments who got large incomes by privatising their telecom companies and
selling licences for the UMTS-generation of mobile phones. It seems to be important
to note that economists and commentators believe that equity prices have remained
until today (May 2002) “extremely high” (Financial Times, 18th of May, page 6).
Also the UMTS engagements are very risky (see Table 4).

The results of the hype constitute a disaster which can be studied in the following
table 3.

Table 3 European telecom companies under pressure (2000/2001)

Deutsche

Telekom1

France

Telecoml

Vodafone
2

BT
Group

2_____

MM02
2

Telefonica
1

KPN
1

Turnover in
bill. Euro

^48^

430

343

32,6

V

710

12,4

Earnings
before
interest,
taxes,
depreciation
in bill. Euro

151

123

TÏ2

■32

0,6 (4)

T28

3,6

Profits/losses
in bill. Euro

-3-ς

^≡8,β

-12,9

A5

no
inform.

+2Д

-7,5

1: year 2000; 2: business year 2000/01 (new figures are not available); 4: estimated
for 2001/02

Source: Süddeutsche Zeitung, 10.5.02, page 22 (Judith Raupp)

Three weeks after the publication of this table Deutsch Telekom published a loss of
4,7 bill. Euro for 2001 at its AGM and forecast a 6 bill. loss for 2002. Vodafone
announced a 21.3 bill. Euro (!) loss before taxes. (Süddeutsche Zeitung, 29./30.5.02,
p. 28), the largest loss in the economic history of Great Britain. Also the UMTS-
future of this sector does not look very confident.

Table 4 The start-up list for UMTS

Company

Start

Employees*

Customers*
in mill._______

Planned

UMTS start

Main owner

T-Mobil

July 2002
(D1)

9,500

23,1

2003

Deutsche

Telekom_____

Vodafone

D2June
1992

9,000

^2L,8

autumn

2002

Vodafone

e-plus

May 1994

4,200

7-ς

2003

KPN Mobile
77.5%
Royal KPN



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