July 2001 - Nr. 7
Telecoms Agency to Allow Wireless Network Cooperation
TWIG - Six companies paid approximately DM 16 billion (US $6.9 billion) apiece last year for licenses to offer a new generation of wireless telephone services in Germany. The cost of building the necessary network to support those services has been put about DM 10 billion ($4.3 billion). As a result of a clarification in the regulatory interpretation of the licensing agreements issued this week, license holders think they might be able to trim their network development costs by as much as DM 4 billion ($1.7 billion).
Under certain conditions, the firms holding so-called UMTS licenses will be able to share not only antenna facilities but also network access technology, the Regulatory Authority for Telecommunications and Posts (RegTP: Regulierungsbehörde für Telekommunikation und Post) announced in Bonn Tuesday (June 5). Authority head Matthias Kurth stressed there has been no change in the terms of the licensing agreements and no change of policy. Citing the flexibility in the licensing agreements to accommodate new developments in network access technology, he said the authority was "simply giving all concerned some help in interpreting the situation" with Tuesday’s announcement. What specifically will and will not be allowed is to be decided on a case-by-case basis. "When it comes down to the test, we will very carefully make sure that the licensing terms are adhered to," Kurth said.
The four smaller UMTS license holders have expressed strong interest in extensive cooperation in network development, the two larger holders, pointing to the competitive advantage cooperation would give their smaller rivals, have voiced reservations. According to Kurth, all concerned now agree cooperation ought to be allowed. "We have set up a framework that the two large providers can also share."
