DT Calls for Tighter 3G Regulations

date: November 29, 2001 - source: BWCS

Deutsche Telekom is reported to be lobbying the German government to change legislation regarding 3G licensees. The German PTO is concerned that under current regulations if a 3G licensee faces closure rival mobile operators could swoop to take over the business and acquire a low cost 3G licence in the process.

Deutsche Telekom’s comments are likely to have been sparked by recent speculation concerning the future of Viag Interkom, which is owned by mm02. The BT wireless subsidiary has stated that it is keeping its loss-making German operations under constant review but is thought to be under pressure from shareholders to sell Viag.

While the German telecoms regulator RegTP has steadfastly refused to amend 3G legislation retrospectively Deutsche Telekom is hoping that 3G licence changes in other European countries will persuade the government to review the situation. With a number of smaller European 3G licensees facing crippling debt problems there is growing potential for deep-pocketed mobile operators such as Japan’s NTT DoCoMo to snap up bargain basement 3G licences.

On Wednesday, Deutsche Telekom blames the high cost of licenses for third-generation (3G) mobile telephony produced a $1.33 billion quarterly loss at the German telecom giant on Wednesday.

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