British Telecommunications PLC
12 June 2001
June 12, 2001
BT WIRELESS AND T-MOBILE TO CO-OPERATE ON
3G NETWORK ROLL-OUT IN UK AND GERMANY
BT wireless and T-Mobile International, the respective mobile arms of BT and
Deutsche Telekom, today announced that 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. BT wireless expects this deal
to bring many benefits for customers, shareholders and the environment. These
include:
* Potential cost savings to BT wireless on capital expenditure relating to
3G network build of up to 30 per cent over 10 years;
* Potential to expand the network availability of next generation mobile
multimedia and data services more quickly;
* 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.
It is expected that definitive agreements will be signed at the end of the
Summer after detailed planning activities have been concluded.
The agreements in the UK and Germany involve two main components:
* 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;
* Co-operation on the initial build of 3G infrastructure as well as
bilateral roaming on 3G networks.
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, 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.
'Together, we can significantly reduce the cost of rolling out 3G networks, we
can offer next generation mobile data services to more customers by achieving
greater coverage faster, and we can minimise the impact on the environment
with fewer base stations and masts. I am delighted that we have been able to
establish a partnership with T-Mobile.'
Kai Uwe Ricke, chief executive officer, T-Mobile International, said: 'This
partnership is the most far-reaching co-operation agreed to date in Europe.
The agreement is an important milestone for fast, full coverage and
inexpensive network construction in perhaps the most significant mobile
communication markets in Europe.'
BT wireless estimates potential capital expenditure savings of around 20 per
cent of the total 3G capital expenditure, or up to 30 per cent of capital
expenditure related to 3G network components only. Additionally, there are
further substantial cost savings on associated operational expenditure that
could be realised. Both parties also recognise that any further technological
advances in the next few years could significantly enhance these projections.
BT wireless and T-Mobile believe that these MoU's are consistent with all
existing regulatory and competition obligations. They are committed to meeting
current 3G licence terms and conditions.
BT wireless
BT wireless has a major European footprint with wholly owned operations in the
UK (BT Cellnet), Germany (Viag Interkom), The Netherlands (Telfort), Isle of
Man (Manx Telecom) and the Republic of Ireland (Esat Digifone). BT wireless
also includes Genie, which is one of Europe's leading mobile Internet portals.
BT wireless owns third generation licences to operate 3G mobile services in
the UK, Germany, The Netherlands, all territories where it has already
launched GPRS services.
BT announced on May 10 that it intends to de-merge BT wireless before the end
of this year.
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Inquiries about this news release should be made to the BT Group Newsroom on
its 24-hour number: 020 7356 5369. From outside the UK, dial + 44 20 7356
5369, or to Derek Bainbridge/Tom Buchanan, Brunswick, 020 7404 5959
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