Telefonica Germany is considering sharing its mobile network with KPN’s local E-Plus business to lower costs. “When people were looking at a potential coming together of Telefonica Deutschland and E-Plus, there was some significant analysis of potential network synergies,” Rachel Empey, CFO of Telefonica Deutschland, told investors on a conference call reported by Bloomberg. “Quite a lot of those synergies might be available through network sharing.”
The report said that Telefonica has narrowed the price range for shares in the IPO of its German unit, to EUR 5.5-6.0 per share, from EUR 5.25-6.5 previously. The company has received orders for all the stock it’s selling in the new range and the deal is expected to be completed 29 October, according to the news agency's sources. Listing in Frankfurt is scheduled the following day.
Telefonica Deutschland told investors it could share 2G and 3G network infrastructure with E-Plus. It’s in talks with two out of its three rivals, but a deal probably won’t be reached before early next year. “We’re generally open to ideas for cooperation,” said E- Plus spokesman Guido Heitmann. “Whenever we see opportunities, we’ll have a closer look.”
