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EU operators discuss pooling infrastructure - report
2013-01-09 10:00:00| Telecompaper Headlines
(Telecompaper) The biggest telecommunications operators in Europe want to create a joint pan-European infrastructure which would unify fragmented national markets in the region. The possibility of a joint infrastructure was the subject of a meeting of the EU Competition Commissioner Joaquina Almunia with representatives of the biggest EU telecommunications groups, including Deutsche Telekom, France Telecom and Telefonica, the Financial Times reports. According to several people familiar with the discussions, the industry attendees left the meeting intent on exploring the idea, given their frustrations that Europe's disjointed market has impeded their ability to compete. One of the paper's said the EU would not oppose such an alliance, but objections could be expected from national regulators. One idea floated since the meeting is the creation of a "newco" structure to pool companies' network infrastructures, along with the debt associated with these assets. The new vehicle could be used on a wholesale basis by all telecoms groups, with potential financial incentives in place to compensate those that contribute their network. It would also have better access to funds, both public and private, to build out next-generation fibre networks.
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Category:Telecommunications