Versatel Telecom, a Dutch high-speed landline company and failed 3G bidder, has filed for bankruptcy protection. The move is intended to speed up the conversion of its heavy debts into equity.
Versatel had bid for a 3G license in the Netherlands, but it claimed to have received a ‘threatening letter’ regarding bidding levels from Telfort, and it exited the auction after the government failed to take action.
The 3G industry will be relieved that the company did not win a 3G license, as this would have increased its debts and possibly resulted in its downfall sooner. If a 3G license holder had gone bankrupt it would have had a damaging affect on the 3G industry.