Germany Moves Toward Allowing 3G Cos To Share Costs
Dow Jones Newswires
February 23, 2001
(This story originally appeared at 1828 GMT Thursday.)
By Jack Grone
Of DOW JONES NEWSWIRES
LONDON -- In a move that could potentially save Europe's telecommunications
companies millions of euros, German regulators have taken initial steps to loosen rules
which govern the building of third-generation wireless networks.
If Germany relaxes its regulations, the six companies planning to launch 3G there would
be allowed to share the cost of building their networks prior to next year's expected
debut of the services, which will bring high-speed Internet access to mobile phones.
The costs of constructing Germany's 3G infrastructure have been estimated at between
EUR6 billion and EUR12 billion, not including the cost of 3G licenses.
Michael Rebstock, a spokesman for Viag Interkom, an affiliate of British
Telecommunications PLC (BTY) which won a 3G license last year, said the regulators
initiated contact two or three weeks ago with all six operators to begin a dialogue on
how the rules could be loosened.
Rebstock said Viag's hope is that the talks will conclude before the wireless operators
begin building their networks.
Officials at the regulatory agency, RegTP, couldn't be reached for comment.
In addition to Viag, the companies planning to launch 3G in Germany are:
-T-Mobile, a unit of Deutsche Telekom AG (DT)
-German operations of Vodafone Group PLC (VOD)
-Mobilcom (G.MBC), an affiliate of France Telecom (FTE)
-Group 3G, a joint venture of Spain's Telefonica SA (TEF) and Finland's Sonera Corp.
(SNRA)
-E-Plus, an affiliate of the Netherlands' Royal KPN NV (KPN).
Each of the operators won the right to offer 3G in last year's high-profile auction of the
licenses, which raised about EUR50 billion. The huge license fees paid in Germany and
elsewhere, along with the stiff development costs of rolling out 3G, have been a major
factor in driving down share prices in Europe's telecoms sector and have had an effect
on several companies' credit ratings in recent months.
Web site breakingviews.com reported earlier Thursday that at least three of the
companies are discussing sharing network equipment. The report didn't specify which
of the licensees are in talks.
Rebstock said Viag Interkom favors collaboration, at least in theory.
A spokesman for Group 3G said, "We are very much in favor of collaborating. Our
strategy certainly contemplates that very clearly." He declined to give further detail.
KPN spokesman Bram Oudshoorn declined to comment directly on the breakingviews
report, but didn't rule out the possibility of sharing network costs.
"In principle, we're open to any form of partnership that could strengthen our competitive
position," Oudshoorn said. |
