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View Full Version : T-Mobile in Talks with Hutchison 3G Over Network Sharing



3GScottishUser
15th September 2007, 01:08 PM
T-Mobile is reported to be in talks with Hutchison 3G UK (3) which could lead to the two networks sharing their network infrastructure. The Financial Times, citing analysts says that the move could lead to a possible outright purchase of 3 by T-Mobile. There have been reports for some time now that Hutchison Whampoa is looking for a trade sale of its UK division.

James Barford, analyst at Enders Analysis, told the newspaper: "This deal, if concluded, would leave T-Mobile as the most obvious potential buyer of 3."

T-Mobile's 3G network currently covers about 85% of the UK population, compared with 90% for 3 - although T-Mobile's existing GSM network covers 99% of the population. Sharing their infrastructure would enable the two companies to go from 90% 3G coverage to 99% at a considerably lower cost. The geographical areas not covered are rural and unlikely to offer a speedy return on the investment of adding 3G services unless the operators find a way to dramatically lower their costs.

For regulatory purposes, it is likely that any sharing would be limited to the Radio Access Networks (RANs). The RAN includes mast, antenna, sites, site support cabinet and power supply as well as antennae, combiners and transmission links, Nodes B (3G), BTS (2G) and the radio network controllers which are linked to the core network. The latest developments in technology mean that base stations can now be configured to transmit more than one operator's signal, which leaves each operator free to determine its own service offering using its own spectrum.

T-Mobile and 3 declined to comment on the news article.

In February, Vodafone and Orange agreed to to share their respective 3G Radio Access Networks (RANs), with a possibility of sharing the GSM RAN as well in the future.

http://www.cellular-news.com/story/26051.php

Hands0n
15th September 2007, 07:15 PM
Hot off the press - I was in the Three store at Bluewater today looking at their £10 HSDPA data dongle product. The salesman there let go that 3 were intending to use the T-Mobile 3G network. I thought nothing of it, other than perhaps a careless comment by the salesman. But now seeing this from 3GSU puts it all in context.

p.s. I didn't buy the HDSPA data dongle...

getti
15th September 2007, 10:29 PM
tmobile are not buying 3 as 3 are not for sale. Thats all i can say on it though

Ben
15th September 2007, 11:29 PM
Anything is for sale if the price is right.

3GScottishUser
16th September 2007, 07:07 AM
HWL have seen what happens every time there is the slightest rumour of 3 disposals in Europe. Their core company share price rockets and that will be the reason why they will now redouble their efforts to extracte themselves from the UK and Italy. The increase of the company valuation may more than compensate for the losses both of these companies have generated. I suspect the time is right for HWL to make it's move as it does not look like it's going to get any easier and the core assets have a decent value that could allow them a dignified exit.

We have all heard the rumours before but this time I think there are good reasons to believe that there is a very good prospect of 5 UK mobile networks becoming 4 with 3 dissapearing from the market altogether as HWL exits to concentrate elsewhere.