MobileCom in talks with three operators on 3G network sharing

date: June 19, 2001

MobilCom said on Monday it was in discussions with its three rivals E-Plus, Group 3G and Sonera about joining forces to build its 3G wireless network in Germany.

The responds from MobileCom came when last week Deutsche Telekom and BT said they were teaming up to share the costs of building the new 3G networks in Germany and Britain.

DT and BT, both under pressure to cut large debt mountains, said their deal could cut 3G capital costs by up to 30 percent. Such savings would be a draw for other mobile operators who have already paid large sums for the licences and may ease concerns that they won't be able to recoup their investment.

Vodafone, the current market leader in Germany's mobile phone market, has been the least keen of the operators to share its 3G network. Analysts say this is because a smaller rival would gain more from such a move than Vodafone.

But an industry source said the world's largest mobile phone operator could still be open to co-operation.

Earlier this month Germany's telecoms regulator RegTP opened the door to cooperation deals by allowing the six owners of 3G licences share major parts of their networks, but was against full co-operation.

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