mmO2 and T-Mobile Signs 3G Network Roll-Out Co-Operation Agreement

date: September 22, 2001

mmO2 and T-Mobile International on Friday announced that they have signed binding agreements to co-operate on the roll-out of 3G mobile networks between their operating subsidiaries in the UK and Germany.

mmO2 and T-Mobile International announced their intention to co-operate on June 12 this year. The final binding agreements between BT Cellnet and One2One in the UK and T-Mobile and VIAG Interkom in Germany were signed on September 20.

Over the past few months both parties have been working extensively to finalise the operational, technical and commercial details of the agreements. This agreement is expected to deliver up to 30 per cent cost savings over 10 years to mmO2 on capital expenditure relating to 3G network build.

Peter Erskine, chief executive officer, mmO2, said: "Today's announcement is another important development for mmO2. We are now in a position to move into the implementation phase and focus on driving forward our 3G network roll-out plans in Germany and UK. This exciting agreement should lead to substantial cost-savings, faster network coverage for us in Germany, and the additional benefit of reducing the number of cell sites needing to be deployed in both countries for 3G."

Kai-Uwe Ricke, Board Member of Deutsche Telekom for Mobile and Online and chief executive officer of T-Mobile International, said: "The speed with which we have reached agreement on these detailed technological and operational points indicates the spirit of co-operation we have established on this issue. Reaching this point means both groups can start to realise a more cost effective 3G network construction in two of the most advanced markets for mobile services in the world."

mmO2 and T-Mobile believe that these agreements are consistent with all existing regulatory and competition obligations. They are committed to meeting current 3G licence terms and conditions.

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