Group 3G can lower network costs by 60%

date: July 30, 2001

The Financial Times reported that the German 3G license holder Group 3G has reached a preliminary network sharing that could cut the rollout of 3G UMTS network by 60%.

Group 3G is owned 57.2% by Telefonica and 42.8% by the Finnish operator Sonera and is the only license holders in Germany without a network or any customers.

Telefonica did not name the partner for the deal, however it said under a two-way deal, Group 3G will save 40% of over the next 10 years and savings would rise to 50% under a three-way deal, and reach 60% if extended to GSM and GPRS services.

In early July, Group 3G has reached an agreement for interconnection on UMTS networks with the German operator Deutsche Telekom AG.

In August 2000, it obtained one of six licenses for 3G mobile telephony which were awarded at auction in Germany.

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