Xfera, which holds one of Spain's four third-generation mobile phone licences, has asked its workforce to "imagine the future" and slashed numbers by 70% because of delays in rolling out the new technology.

The company, which does not have an operational mobile phone network, had previously said it might lay off workers until it could begin delivering services.

3G phone services, also known as Universal Mobile Telecommunications System (UMTS), were originally due to be launched in 2001, but are now expected to be ready by late 2002 or 2003.

Xfera will cut its 600 employees down to 160, it said in a statement.

Hollow claim?

The company's website claims it will "do things differently" to other 3G mobile phone operators.

"But with no shadow of doubt: the key, our best argument for successful management of a project as ambitious as Xfera's, is the human team, and we are convinced that we have, and are training, a magnificent team of professionals," it adds.

But like operators across the world, it has now also been forced to cut jobs.

Vivendi Universal of France and its Spanish partner, Fomento de Construccion y Contratas, Finnish operator Sonera and Spanish construction firm Actividades de Construccion y Servicios, are all major shareholders.

The other UMTS licence-holders in Spain are Telefonica Moviles, Vodafone (through Airtel) and Amena whose shareholders include Telecom Italia.