Marconi, Railtrack to Build U.K. Phone Mast Network (Update1)
By Simon Clark
Brussels, March 26 (Bloomberg) -- Marconi Plc, the U.K.'s No. 1 phone-equipment maker, and Railtrack Group Plc, owner of the U.K.'s rail tracks and stations, won European Commission approval for a joint venture to put up and manage a U.K. network of telecommunications masts.
Ultramast Ltd., in which the partners both have a 50 percent stake, will build about 5,000 mobile phone masts on railway land from northern Scotland to the shores of southwest England, Railtrack said. The masts relay phone calls and will enable mobile phone operators to provide a nationwide service.
``Marconi will provide all the capital and know-how while we provide the land,'' said Kevin Groves, a spokesman for Railtrack.
Customers of the new venture may include all five holders of U.K. licenses to provide high-speed mobile phone, or UMTS, services. Groves declined to say how much the venture would make for the two partners as contracts were still being negotiated.
Mobile phone masts have caused some concern in the U.K. and the rest of Europe because of reports linking them to cancer.
``The advantage of building on railway land is that we can try and insure the masts are away from built up areas,'' Groves said.
Potential users of the masts include Vodafone Group Plc, British Telecommunications Plc, Hutchison 3G Ltd., Deutsche Telekom AG's One 2 One Ltd. and Orange SA.
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