BT Wireless and Deutsche Telekom’s T-Mobile International said their operating companies in the United Kingdom and Germany plan to cooperate on the rollout of third-generation networks.
The agreement includes coordinated rollout of 3G infrastructure and sharing of new and existing base stations, including sites, masts and antennas, in major urban areas. In addition, the companies will cooperate on the initial buildout of 3G infrastructure, as well as bilateral roaming on 3G networks.
BT Wireless said the potential cost savings on capital expenditure of 3G networks could be up to 30 percent over 10 years. In addition, the agreement could expand the network availability of 3G services more quickly than without sharing and reduce the required number of new masts and base stations, the companies said.
In the United Kingdom, BT Cellnet signed a memorandum of understanding with One 2 One, a wholly owned subsidiary of T-Mobile, and in Germany T-Mobile signed a similar MoU with Viag Interkom, the wholly owned subsidiary of British Telecommunications plc. Detailed planning activities will be concluded by the end of the third quarter, the companies said. One 2 One customers can roam on BT Cellnet’s current networks in selected areas of the United Kingdom.
The German government said last week that 3G operators in that country, where the most was spent for European 3G spectrum, could share base stations, towers and antennas. Oftel, the U.K. telecom regulator, has not made a decision about network sharing in that country.
However, the relaxing of regulatory rules was expected to benefit mainly new operators that do not have current networks. Both BT and DT are established operators in both the United Kingdom and Germany, although they have been seeking ways to cut their high debt burden, brought on mainly by 3G license acquisitions.
Nortel Networks, which is supplying BT Cellnet’s 3G network in the United Kingdom, said it welcomed the announcement and added it “has consistently supported all efforts by operators to improve the business case and to provide universal access to 3G services at the earliest dates.”
BT plans to demerge BT Wireless before the end of this year under its reorganization plan announced last month.
