Feeds

BT confirms 3G building contract with Deutsche Telekom

Saves themselves £2.5 billion

  • alert
  • submit to reddit

Application security programs and practises

BT and Deutsche Telekom have signed legally binding contracts over the joint construction of 3G phone networks in Europe. They reckon the deal will provide them with 30 per cent cost savings over a 10-year period - amounting to around £2.5 billion.

Both companies announced their intention to build the networks together in June when the German regulator RegTP relax its rules and mobile operators realised they could save themselves millions by working together. As such it's not really mind-blowing news but both companies' share prices have dropped: DT 4 per cent and falling; BT 8 per cent and falling.

It's impossible to tell whether this is a positive or negative reaction from the City since all shares are in turmoil at the moment (the FTSE100 is down 6.3 per cent as we write). However the logic behind the deal is hard to argue with: all mobile companies - BT and DT in particular - are seriously in debt thanks to the huge amounts paid for 3G licences.

3G networks require new equipment and hundreds more transmitters and that's going to cost yet more millions. And all this before one penny from consumers has come in. It makes perfect sense to join forces - both financially and environmentally. In fact there isn't a 3G operator left that hasn't twinned with someone.

The actual deal is between mmO2 (formerly BT Wireless) and T-Mobile (DT's mobile arm). And here are the all-important quotes:

Peter Erskine (chief exec, mmO2): "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 (chief exec, T-Mobile): "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." ®

Eight steps to building an HP BladeSystem

More from The Register

next story
Sysadmin Day 2014: Quick, there's still time to get the beers in
He walked over the broken glass, killed the thugs... and er... reconnected the cables*
Apple fanbois SCREAM as update BRICKS their Macbook Airs
Ragegasm spills over as firmware upgrade kills machines
SHOCK and AWS: The fall of Amazon's deflationary cloud
Just as Jeff Bezos did to books and CDs, Amazon's rivals are now doing to it
Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales
Investors really hate it: Share price plunge as growth SLOWS in key AWS division
EU's top data cops to meet Google, Microsoft et al over 'right to be forgotten'
Plan to hammer out 'coherent' guidelines. Good luck chaps!
US judge: YES, cops or feds so can slurp an ENTIRE Gmail account
Crooks don't have folders labelled 'drug records', opines NY beak
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
Manic malware Mayhem spreads through Linux, FreeBSD web servers
And how Google could cripple infection rate in a second
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.