D2 may change 3G collaboration idea

date: June 19, 2001

Industry insiders said Vodafone D2 is planning to enter into a co-operation in the construction of a 3G network in Germany and not go it alone in the construction.

However spokeswoman said, the company would neither confirm nor deny this. "All our options, just like those of our competitors, remain open."

Previously Vodafone always rejected the idea of a collaboration, saying his company was not interested in helping out its rivals.

But companies have estimated that co-operation should save them 30% of total backbone costs, while also allowing them to offer more comprehensive 3G services at an earlier date than would otherwise have been the case. Such collaborations were approved in principle two weeks ago by Germany's RTP telecommunications regulator.

Industry insiders are now saying that even Vodafone can't afford to pass up on the opportunities opened up by the RTP's decision and if Vodafone do not co-operate than it would lose out on network saving cost.

The huge license fees paid in Germany and elsewhere, along with the stiff development costs of rolling out 3G services have been a major factor in driving down share prices in Europe's telecoms sector and caused reduce investment in 3G rollout.

Last week, Deutsche Telekom and BT forged the first 3G network sharing alliance which will save them a combined EU5billion.

Mobilcom, E-Plus and Group 3G are also planning an alliance that will only leave Vodafone without a partnership deal in Germany.

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