BT reportedly set for meeting with UK govt over funding for 3G mobile network

date: April 16, 2001 - source by:

British Telecommunications PLC is preparing for a crucial meeting with the government over how it will finance the next generation of mobile services and the expansion of broadband networks, the Observer reported, citing no sources.

The paper says senior officials at the Department of Trade and Industry are concerned that progress in building broadband networks may be hampered by BT's 4.5 bln stg payment for a 3G mobile licence.

It says BT executives including Sir Peter Bonfield and finance director Philip Hampton are planning a meeting with officials from the DTI and regulator Oftel to present their case.

BT has already indicated its wish to collaborate with either Vodafone or One2One on building networks for 3G mobile services.

Now it wants to team up with such rivals to offer packages to customers in a bid to reduce competitive pressures when 3G services are launched.

The DTI fears that such a move would reduce competition.