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E-Plus to take over MobilCom's network

October 22, 2002

German cellular operator E-Plus Mobilfunk GmbH is in talks with struggling 3G license holder MobilCom to buy MobilCom's 3G network. E-Plus would take over the partially built network, which covers 17% of the German population, and in return waive a EUR600 million ($582 mil) claim from a services contract with MobilCom.

Both operators were awarded 3G licenses in July 2000 costing around $7.6 billion per license. Under the terms and conditions of the license, operators must cover 25% of the population by end 2003.

MobilCom has made excellent process in rolling out 3G before France Telecom, who owns 28% of the German operator, decided to stop development funding. The debt laden operator was rescued from bankruptcy last month by the German government.

It is believed MobilCom has around 900 fully equipped 3G base stations in Germany.

 

 


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