The European Commission is to support an agreement by mobile phone operators T-Mobile and mmO2 to share the costs of building a third-generation (3G) infrastructure in Britain, according to a report today.
The clearance by the European Union's executive body for the deal between T-Mobile, a Deutsche Telekom unit, and mm02, the former arm of BT spun off last year, is expected over the next few days, the Financial Timessaid.
It follows indications the Commission will approve a similar agreement between the two companies in Germany, it said.
The move affecting Europe's two biggest telecoms markets will help reduce the heavy costs associated with the rollout of 3G services.
Operators spent more than €100 billion on 3G licences but the introduction of services has been hit by technical delays and soft demand.
T-Mobile and mm02 estimate their deal could save up to 30 per cent of the costs of building 3G infrastructure, the Financial Timessaid.
"From a competition law point of view, network sharing reduces competition," a lawyer close to the issues was quoted as saying. "But there is a recognition by the Commission that something has to be done for the mobile industry".
AFP