British Telecommunications PLC
21 September 2001
Embargoed until 07:00am
21 September 2001
mmO2 AND T-MOBILE SIGN 3G NETWORK ROLL-OUT CO-OPERATION AGREEMENT
mmO2 and T-Mobile International today announced that they have signed
binding agreements to co-operate on the roll-out of third generation
(3G) mobile networks between their operating subsidiaries in the UK
and Germany.
mmO2 and T-Mobile International announced their intention to
co-operate on June 12 this year. The final binding agreements between
BT Cellnet and One2One in the UK and T-Mobile and VIAG Interkom in
Germany were signed on 20 September.
Over the past few months both parties have been working extensively
together to finalise the operational, technical and commercial details
of the agreements. This agreement is expected to deliver up to 30 per
cent cost savings over 10 years to mmO2 on capital expenditure
relating to 3G network build.
Peter Erskine, chief executive officer, mmO2, said: 'Today's
announcement is another important development for mmO2. We are now in
a position to move into the implementation phase and focus on driving
forward our 3G network roll-out plans in Germany and UK. This exciting
agreement should lead to substantial cost-savings, faster network
coverage for O2 in Germany, and the additional benefit of reducing the
number of cell sites needing to be deployed in both countries for 3G.
Kai-Uwe Ricke, Board Member of Deutsche Telekom for Mobile and Online
and chief executive officer of T-Mobile International, said: 'The
speed with which we have reached agreement on these detailed
technological and operational points indicates the spirit of
co-operation we have established on this issue. Reaching this point
means both groups can start to realise a more cost effective 3G
network construction in two of the most advanced markets for mobile
services in the world.'
mmO2 and T-Mobile believe that these agreements are consistent with
all existing regulatory and competition obligations. They are
committed to meeting current 3G licence terms and conditions.
Notes to Editors
The network roll-out co-operation deal remains subject to any
necessary regulatory approvals.
Following the proposed demerger from BT, mmO2 will have wholly owned
operations in the UK (BT Cellnet), Germany (VIAG Interkom), The
Netherlands (Telfort), the Republic of Ireland (Digifone) and the Isle
of Man (Manx Telecom) and will also include Genie, a leading mobile
internet portal.
Following its proposed demerger from BT, mmO2 will own third
generation licences to operate 3G mobile services in the UK, Germany
and the Netherlands - all territories where its operating companies
have already introduced GPRS services. mmO2 expects its Irish
subsidiary to apply for a 3G licence in Ireland when the application
process commences.
mmO2 is the holding company of the mmO2 group of companies and O2 will
be the brand of the customer facing businesses of mmO2 plc.
This press announcement, which has been prepared by and is the sole
responsibility of mmO2 plc, has been approved solely for the purposes
of section 57 of the Financial Services Act 1986 by Merrill Lynch
International, Morgan Stanley & Co. International Limited and Schroder
Salomon Smith Barney which are regulated in the UK by The Securities
and Futures Authority Limited.
Merrill Lynch International, Morgan Stanley & Co. International
Limited and Schroder Salomon Smith Barney are advising mmO2 plc and
British Telecommunications plc in relation to the proposed demerger
and no-one else and will not be responsible to anyone other than mmO2
plc and British Telecommunications plc for providing the protections
afforded to the customers of Merrill Lynch International, Morgan
Stanley & Co. International Limited and Schroder Salomon Smith Barney
in relation to the proposed demerger.
Schroder Salomon Smith Barney is the trading name of Salomon Brothers
International Limited. Schroder is a trademark of Schroders Holdings
plc and is used under licence by Salomon Brothers International
Limited.
This announcement does not constitute, or form part of an offer, or
solicitation of an offer, to purchase or subscribe securities.
---------------------
Inquiries about this news release should be made to BT Group Newsroom on the
24-hour number: 020 7356 5369 or Simon Gordon on 07710 070698. From outside
the UK, dial +44 7356 5369, or to Derek Bainbridge or Fiona Fong, Brunswick,
020 7404 5959.
More information about the company can be accessed at the website www.O2.com
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