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BT Wireless, T-Mobile to cooperate on 3G roll-out in UK,

Tue 12 Jun 2001 07:29:28

LONDON (AFX) - BT Wireless and T-Mobile International, the mobile telecom
arms of British Telecommunications PLC and Deutsche Telekom AG, said their
operating companies in the UK and Germany intend to co-operate on the roll-out
of third generation (3G) mobile networks.

The companies are the first operators to announce such an approach in two
of the largest mobile markets in western Europe, they said in a statement.

BT Wireless said it sees potential cost savings of up to 30 pct over 10
years on its capital expenditure relating to 3G network develo0pment.

It also sees a potential to expand the network availability of next
generation mobile multimedia and data services more quickly and a reduction in
the required number of new masts and base stations.

In the UK, BT Cellnet has signed a Memorandum of Understanding (MoU) with
One2One, a wholly-owned subsidiary of T-Mobile, and in Germany T-Mobil has
signed a similar MoU with Viag Interkom, which is wholly-owned by BT Wireless,
the statement said.


It is expected that definitive agreements will be signed at the end of the
summer after detailed planning activities have been concluded.

The agreement foresees a co-ordinated roll-out of 3G infrastructure and
sharing of new and existing base stations, including sites, masts and antennas,
in major urban areas.

It also envisages co-operation on the initial build of 3G infrastructure as
well as bilateral roaming on 3G networks, the companies said.

In addition, One2One customers will have the opportunity to roam on BT
Cellnet`s 2G and 2.5G networks in selected areas of the UK.

Peter Erskine, chief executive officer of BT wireless, said: "This is a
pioneering agreement - we are the first to drive the intelligently planned
creation of future mobile communications in two of the biggest mobile markets
in western Europe."

Kai Uwe Ricke, chief executive officer of T-Mobile International, said:
"This partnership is the most far-reaching co-operation agreed to date in
Europe."

BT Wireless said it estimates potential capital expenditure savings of
around 20 pct of the total 3G capital expenditure, or up to 30 pct of capital
expenditure related to 3G network components only.

BT announced on May 10 that it intends to de-merge BT Wireless before the
end of this year.

an/




Copyright © 2001 AFX News Ltd

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