Concurrent with the bidding deadline to operate a fourth wireless phone network in Germany, cellular operators DeTeMobil and Mannesmann Mobilfunk GmbH have announced extensive rate cuts.
The American Embassy in Bonn, Germany, reported two consortia, a partnership of Viag and British Telecommunications plc, and a group comprised of Daimler-Benz AG, AT&T International and Unisource, expressed interest in the 1.8 GHz personal communications network license. Bids were due Oct. 15. An official report confirming the entrants has not yet been issued by the Post Ministry, said Peter Ziemons, who works in the economic section of the embassy.
DeTeMobil, the wireless subsidiary of Deutsche Telekom, dropped its monthly charge from about $32 to about $19 and said it will stop offering phones for free or at a discount with each new service connection. The company operates the D1 Global System for Mobile communications network.
AirTouch Communications Inc. announced its German cellular joint venture, Mannesmann Mobilfunk GmbH, will drop monthly tariffs and airtime rates by the end of October.
Known as D2 Privat, the operator will cut the monthly rate for the D2-Fun 24 plan from about $32.50 to about $16. For the D2-Classic, peak airtime will be reduced from 84 cents to 64 cents per minute and off-peak calling will be 45 cents per minute. Airtime will be billed at 45 cents or 25 cents, peak or off-peak, for conversations between D2 users. Both plans will charge customers a one-time activation fee of $64.
Beginning Oct. 30, D2 users will be able to select among four new tariff options if they choose.
E-Plus, Germany’s only GSM 1.8 GHz operator, had not indicated plans to cut rates. The company is a joint venture of Thyssen AG, Veba AG and BellSouth Corp.
German industrial conglomerate Viag and BT originally were part of a three-way alliance with RWE Telecommunications, a major German power company. RWE recently dropped out “because of difficulties in future strategies,” commented Ziemons. He noted, “RWE sees the future in terrestrial telephone networks, complemented by mobile networks.”
If licensed, Viag and BT plan to invest about $2.6 billion during the next five years, reported a European source. Viag sees opportunity in a market where other mobile phone operators have priced service high. The partners possibly would use the license to provide a wireless service used by mobile and fixed users.
AT&T was not available for comment. The members of Unisource include Telia AG of Sweden, the Swiss Telecom PTT (Post, Telephone and Telegraph), Telefonica of Spain and PTT Telecom Niederlande, said Ziemons.
The German Ministry plans to award the license by May. The license carries no fee nor any foreign ownership restrictions.
Mannesmann Mobilfunk is a partnership of AirTouch, with 34.8 percent ownership, and Mannesmann AG.
Economic and Management Consultants International Inc. reported Germany had about 4.6 million mobile phone users in June, which represents about 5.7 percent penetration.
