Hi3G and Europolitan Vodafones to share 3G Infrastructure Services

date: May 15, 2001 - source: Hutchison Whampoa

3G Infrastructure Services AB will be the name of Hi3G and Europolitan Vodafone's equally owned joint venture company. The company will provide the two companies with a UMTS infrastructure covering up to 70 per cent of the Swedish population. This means that the number of masts and the associated costs will decrease by around 50 per cent for both companies. Both companies are open to let other licence holders join 3G Infrastructure Services AB.

"Our joint approach allows Hi3G to maximise cost savings and pass the benefit on to our customers. We know that this co-operation will be widely recognised both here in Sweden and internationally due to the advantages it brings to consumers", said Chris Bannister, CEO of Hi3G.

"This joint venture will enable us to cut our investment costs and build a high quality 3G infrastructure which will benefit Europolitan Vodafone's customers", said Jon Risfelt, CEO of Europolitan Vodafone.

3G Infrastructure Services AB is one of the first joint companies to have been set up by two UMTS licence holders to co-operate on building and operating jointly owned UMTS infrastructure.

The company will build a high quality UMTS infrastructure in Sweden and secure capacity for the two partners and their customers. Trough the co-operation the number of masts decreases, which limits the effect on the environment and has an impact on the application processes for building permits. A Managing Director has been appointed and will be announced later. The company headquarters will be located in the Stockholm area. Operations will be concentrated on the areas outside Sweden's three major cities, Stockholm, Goteborg and Malmo.

The agreement - subject to approval from appropriate authorities - is fully in line with the regulations set up by The Swedish National Post and Telecom Agency, PTS, and the licence conditions issued to Europolitan Vodafone and Hi3G.

The co-operation only concerns UMTS infrastructure. The companies will retain their operating independence including designing and delivering customer care, marketing and pricing of services and content. Europolitan Vodafone and Hi3G are open to invite other UMTS licence holders to take part in the building of its UMTS infrastructure.

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