RTP mulls allowing 3G suppliers to share infrastructure costs

date: 23rd February 2001, source by: handelsblatt.com

In a move that could potentially save Europe's telecoms companies millions of euros, German regulators have taken initial steps to loosen rules which govern the building of third-generation wireless networks.

If Germany relaxes its regulations, the six companies planning to launch 3G there would be allowed to share the cost of building their networks prior to next year's expected debut of the services, which will bring high-speed Internet access to mobile phones.

The costs of constructing Germany's 3G infrastructure have been estimated at between 6 billion euros and 12 billion euros, not including the cost of 3G licenses.

Michael Rebstock, a spokesman for Viag Interkom, a unit of British Telecommunications PLC, which won a 3G license last year, said the regulators initiated contact two or three weeks ago with all six operators to begin a dialogue on how the rules could be relaxed.

Rebstock said Viag's hope is that the talks will conclude before the wireless operators begin building their networks.

Officials at the RTP regulatory body couldn't be reached for comment.

In addition to Viag, the companies planning to launch 3G in Germany are: T-Mobile, a unit of Deutsche Telekom AG, the German operations of Vodafone Group PLC, Mobilcom a subsidiary of France Telecom, Group 3G, a joint venture of Spain's Telefonica SA and Finland's Sonera Corp., E-Plus, a unit of the Netherlands' Royal KPN NV.

Each of the operators won the right to offer 3G in last year's high-profile auction of the licenses, which raised about 50 billion euros. The huge license fees paid in Germany and elsewhere, along with the stiff development costs of rolling out 3G, have been a major factor in driving down share prices in Europe's telecoms sector and have had an effect on several companies' credit ratings in recent months.

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