MADRID, April 11 Spanish telecom operator
Telefonica and Dutch group KPN are set to
reopen talks over sharing their mobile networks in Germany, the
Financial Times reported on Thursday.
Such a network-sharing deal for their German subsidiaries O2
Germany and E-Plus would help cut capital expenditures for the
two highly indebted groups.
Telefonica Deutschland Chief Executive Rene Schuster told
Reuters in February the unit was open to network sharing deals,
but that there were no active talks underway at that time.
02 Germany and E-Plus each hold 16 percent of the German
mobile market, and trail leaders Vodafone and Deutsche
Telekom, which each hold 34 percent shares.
The two leaders are investing massively to upgrade their
networks with fourth generation mobile technology that boosts
speeds by up to five times, leaving 02 Germany and KPN
The two companies held talks last year on a possible sale of
KPN's E-Plus to Telefonica, which fell apart because
Telefonica's high debt made the deal impossible during the
Eurozone debt crisis.
A Telefonica spokesman declined to comment on the Financial
Times report. KPN also declined to comment.
Telefonica already shares networks with competitors in
Britain, Mexico and Brazil, but sources familiar with the matter
cautioned that any similar move in Germany would be at a very