TOKYO-NTT DoCoMo announced it entered arrangements with Hutchison Whampoa and KPN Mobile for cooperation regarding European third-generation (3G) mobile networks. The agreements cover four European markets-the United Kingdom, Germany, France and Belgium.
In the United Kingdom, DoCoMo will acquire a 20-percent stake for 1.2 billion (US$1.8 billion) and KPN Mobile will acquire a 15-percent stake for 900 million (US$1.4 billion) in Hutchison’s 3G UK Holdings Ltd., which includes the U.K. 3G license it acquired with Canada’s Telesystems International Wireless (TIW) at auction in May. Hutchison and TIW paid 4.4 billion (US$6.6 billion) for the 3G license in April.
“We consider the European market to be a key element in our global strategy,” said Keiji Tachikawa, DoCoMo president.
In Germany, Hutchison and KPN Mobile will form a new consortium, named E-Plus-Hutchison, to bid for a 3G license in the country’s upcoming auction. If successful, the companies will jointly build a 3G network, but develop competing services using the core network.
In France, the trio said it will participate in the French 3G license award process, with discussions with potential partners under way.
Hutchison and KPN Mobile will bid for a Belgium 3G license through a joint bidding consortium. The companies also said they will cooperate in joint research and development projects, procurement of infrastructure equipment and handsets, roaming, and multimedia and wireless Internet ventures.
After announcing a memorandum of understanding with KPN in May to acquire 15 percent of the carrier, DoCoMo said in July it agreed to invest 4 billion euros (US$3.8 billion) or acquire 176.5 million shares of the Dutch mobile company.
In related European 3G news, at press time the Dutch 3G auction was under way with six bidders competing for five licenses. KPN Mobile, Libertel, Telfort, Dutchtone, Ben and VersaTel were in the running, with the highest bids at about US$60 million.
