BRUSSELS, July 2 European Union antitrust
regulators cleared on Wednesday Telefonica's
8.6-billion-euro ($11.73 billion) bid for KPN's German
unit, after the Spanish telecoms provider agreed to sell network
capacity and radiowave spectrum.
The European Commission said Telefonica agreed to sell up to
30 percent of the merged company's network capacity and would
also divest radio wave spectrum and other assets to allow for
the entry of new competitors in Germany.
The Commission, which acts as the competition watchdog in
the 28-member bloc, said the remedies should allow for the entry
of up to 3 "virtual" operators, which rent wholesale capacity
from network operators to offer their services.
"The remedies to which Telefonica commits ensure that the
acquisition of E-Plus will not harm competition in the German
telecoms markets," European Competition Commissioner Joaquin
Almunia said in a statement.
(Reporting by Robert-Jan Bartunek, editing by Robin Emmott)