PTK Centertel and Polska Telefonia Cyfrowa intend to share radio access network

Polska Telefonia Cyfrowa, the “Era” and “Heyah” networks operator, and PTK Centertel, the “Orange” network operator, have signed a letter of intent to cooperate for network infrastructure and radio frequency sharing. The companies have filed a motion to the Polish Competition Office (’UOKiK’) to obtain its permission to establish a joint venture entity, responsible for operating both operators’ radio access networks (RANs). Thanks to this cooperation, customers will have access to a better quality network supporting innovative services while at the same time it will increase the network investments’ effectiveness. It will also allow for faster infrastructure development and will deliver to both companies cost savings amounting to hundreds of millions of zloty over the next 5 years.

“The cooperation initiated by the letter of intent signed today marks a new chapter for the telecommunication services in Poland. Two leading Polish companies will share their potential to offer their clients the best infrastructure in Poland to support the mobile telephony and internet services. Joint networks development and network operation will bring plenty of benefits to our clients,” said Klaus Hartmann, President of Polska Telefonia Cyfrowa.

“The cooperation between operators in the field of network investments and operations is the future of the market and at the same time an absolute necessity. I have stated many times, that mobile operators can and should join forces to build a modern network in Poland. Cooperation may improve the operators’ margin and minimize investment risk in case of new technologies. The letter of intent signed today with PTC opens entirely new prospects for such cooperation,” said Maciej Witucki, President of TP Group.

According to the preliminary arrangements, both companies will have an equal 50% stake in the new joint venture company, which would build, operate and maintain co-used networks within the mutual cooperation.

The parties have declared that upon a positive decision from the Polish Competition Office (’UOKiK’), they will agree on details of their cooperation and will formalize them by signing relevant agreements. The companies have agreed that the scope of the cooperation initiative is limited to technical aspects and will not include other parts of their business activity on the telecommunication market.

The cooperation will be beneficial for the market, the consumers and for both operators. It will allow the partners to meet the following objectives:

* widen the coverage area, which will support the delivery of modern services, including mobile broadband, to a greater number of customers
* reduce costs and maximize the efficiency of investments through joint planning of new investments and network upgrades
* continue to own their respective infrastructure while reducing network operating costs