KPN and Group3G confirm deals in network cooperation

date: September 14, 2001

Dutch KPN Telecom NV unit E-Plus announced on Friday it would cooperate with Group 3G to roll out a 3G mobile network in Germany, resulting in "considerable" cost savings.

The agreement remains open to a third partner, it said in a statement.

Group 3G is a joint venture between Finland's Sonera and Spanish mobile phone operator Telefonica Moviles .

Telefonica Moviles has told analysts cost savings would be 40 percent of 3G's original capital expenditure of 6.2 billion euros over ten years in a two-party agreement. Those savings could rise to 50 percent with three partners, or 60 percent depending on other factors.

In July Group3G concludes interconnection operator contract with Deutsche Telekom AG as first UMTS operator.

Group3G is a consortium of the Spanish mobile telephone operator Telefonica Móviles (57.2%) and the Finnish the group, Sonera (42.8%) - wins as a bidder one of the six UMTS broadband licenses in Germany, in August 2000.

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