Germany’s 3G operators will be allowed to share their network infrastructures.
The six licensed 3G operators in Germany have been told that they will be able to share a network infrastructure, all using the same B Nodes, Radio Network Controllers, cables, antennas, masts, power supply sources and sites. However, each operator must still transmit on separate UMTS frequencies.
RegTP, the German telecommunications regulator was able to allow this without amending the original license agreements or rewriting the laws; a simple reinterpretation sufficed. This humble measure could accelerate the development of the networks and save each of the UMTS licensees billions of Euros, possibly as much as half of the expected costs of building and operating a 3G network in Germany.
Network sharing will obviously benefit the smaller operators more, and indeed was designed to do so, but such large savings are also well received by larger operators. Mobilcom, Group 3G, E-Plus and Viag Interkom (the smaller operators) have already welcomed the announcement. Deutsche Telekom and Vodafone though are yet to make their feelings public. They had threatened legal action were RegTP to have changed the license terms, and Deutsche Telekom has already welcomed the fact that this has not happened; Vodafone though is still picking over the new arrangements.
Although the savings that will result from network sharing are considerable, it is feared that some operators will still be unable to recover their initial outlay on licenses in the medium term. The measures taken by RegTP then, although helping to slash both set-up and operating costs, may not be sufficient to prevent the German market consolidating.
