Germany governmant say no to UMTS alliances

date: August 20, 2001

Matthias Kurth, president of the German regulation authority for telecoms and postal services, categorically rejects mergers and all forms of alliances between the holders of UMTS licences in Germany. He says that such arrangements would not be compatible with German legislation.

However, licence holders can hand the licences back to the authority without gaining compensation for their investment. The authority would then return the frequencies to the market as soon as possible.

In the capital markets there have been rumours about alliances between E-Plus, Mobilcom and Group 3G of Telefonica and Sonera.

In June, T-Mobile International and BT Wireless have agreed a far-reaching cooperation for building and operating their UMTS networks in Germany.

T-Mobile assumes that it will be possible to share up to 50 percent of the planned UMTS locations for Germany. This will lead to a considerable decrease in the number of additional antenna to be set up and saving of total about 25 to 30%.

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