ROME, Nov 22 (Reuters) - Italian 3G mobile phone group Ipse2000 -- controlled by Spain's Telefonica and which has scaled back its investment plans -- may give back some of its frequencies to save cash.
Ipse shareholders met on Friday to consider giving back to the Italian government five megahertz (MHz) of the 15 MHz spectrum space it acquired in 2000, a spokesman for Ipse said.
As a new entrant to Italy's telecoms sector bidding for UMTS licences, Ipse was offered an extra five MHz with the 10 MHz offered to existing mobile phone operators planning third-generation (3G) services.
Under the contract, Ipse would pay 800 million euros for the extra spectrum over 10 years and so far only a first payment of 100 million has been made.
However, earlier this year Ipse reduced its investment plans, opting not to provide GPRS mobile services and waiting instead for more advanced 3G technology, amid differences between shareholders.
As well as Telefonica, these include include Fiat , bank Capitalia and Rome utility Acea .
Industry expectations for 3G have dimmed and what was once seen as a way for telecoms firms to make untold profits is now considered a costly adventure which has yet to bear fruit.
Ipse risks fines from the Italian government if it fails to meet network rollout targets and is believed to favour selling its remaining spectrum.
So far, however, the European Commission has not yet spelt out rules allowing companies to sell their 3G licences.
Ipse's shareholders were due to resume their meeting on November 29, the spokesman said.