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EC approves network sharing

July 14, 2003

Reuters new reported that The European Commission will this week approve a plan by mobile phone operators mm02 and T-Mobile to share networks for 3G mobile phones in Germany, an EU source said on Monday.

Last September, The EC has put forward a paper that details the conditions under which 3G rollouts should take place across the region.

The EC last year proposed that operators' 3G licensing conditions should not be changed, but instead that member states could sanction operators to share infrastructure and allow them to trade spectrum. The proposal stated that whatever happens national regulators should ensure a predictable environment with legal certainty for operators.

The commission is, however, willing to investigate solutions with member states regarding the granting of permission to share infrastructure. "In the short term, public authorities should facilitate the deployment of networks by harmonising rules for the authorisation of base stations and speeding up procedures for the acquisition of sites for base stations," the EC said.

To the press, The EC said it had granted the exemption for mm02 and T-Mobile to share networks because it believed national roaming could lead to quicker and better 3G coverage of areas that are generally seen as providing less economic return to operators.

In the first ever 3G network sharing agreement in mid-2002, the telecoms regulator in the Netherlands, OPTA, confirmed the country's five license holders could enter full network sharing agreements. Dutchtone, backed by Orange, and 3G Blue, backed by Ben and T-Mobile, have agreed to operate on a joint network in order to keep their rollout costs to a minimum.

Source told 3Newsroom.com that Hutchison Whampoa may be interested in buying mmO2 if spectrum trading was allowed in Germany. Hutchison, a former powerhouse in Germany, do not have a 3G license in the country and if it acquires mm02, the smallest 3G license holder in Germany, could mean a return of the giant.

 


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