Brussels, 16/07/2003 (Agence Europe) - The European Commission on Wednesday adopted a positive decision on the sharing of third generation ("3G") networks. This decision confirms that site sharing in itself does not raise competition concerns. The investigation carried out by Commission services also confirmed that national roaming between licensed network operators benefits consumers by allowing operators involved to offer better and quicker 3G coverage. This is especially true for less built-up and rural areas of Germany. Roaming by O2 Germany's customers on T-Mobile's network can also be exempted from the competition rules with respect to urban zones, but for a more limited period. Roaming will enable the smallest operator on the German market, O2 Germany, to launch earlier and better 3G services. The exemption for rural area roaming will end on 31 December 2008. In urban areas, the exemption will start to be phased out earlier across specific cities and regions comprising around 50% of the German population, in accordance with a strict timetable.
T-Mobile and mmO2 entered into agreements to share 3G site infrastructure ("site sharing") and to roam on their 3G networks in the UK and Germany. In February 2002, the parties asked the Commission for clearance or, alternatively, an exemption of their agreements from the antitrust rules. On 30 April 2003, the Commission adopted a favourable decision in relation to the UK agreement of the two parties.
The Commission's investigation has revealed that the German agreement on site sharing between companies does not restrict competition, because the scope of the agreement is limited to basic infrastructure, including pylons, power supply, racking and cooling. This practise is also widely promoted for environmental and health reasons at national and EU level.
The agreement on national roaming is exempted from the competition rules. National roaming between the network providers limits network-based competition with respect to coverage, retail prices, quality and transmission speeds, but, the Commission points out, it encourages market entry, which leads to better and quicker 3G service coverage.
In urban areas, roaming is limited to O2 Germany customers, and can be exempted during a short start-up period until it has set up its own network. The Commission believes that roaming will help O2 Germany to launch better and earlier 3G services.
However, as the roll-out of capacity in urban areas will be undertaken at a faster pace, the roaming exemption will be phased out in certain cities and regions covering about 50% of the population, according to a strict timetable ending on 31 December 2008.
In rural areas, exemption will also end on 31 December 2008. Roaming in rural areas will allow in particular O2 Germany, the smallest operator on the German market for mobile telephony, to compete as a nationwide 3G operator.
In this instance, says the Commission, 3G roaming will benefit the consumer, as it increases choice and strengthens retail competition on the German mobile telephony market.