European Commission accepts T-Mobile, O2 Czech concessions

European Commission accepts T-Mobile, O2 Czech concessions

Deutsche Telekom and PPF Group had their concessions for network sharing agreements between their units in the Czech Republic accepted by the European Commission.

In a statement, EC executive vice–president Margrethe Vestager highlighted the benefits of network sharing agreements such as faster deployments, capital savings and boosting coverage in remote locations. “But such cooperation can also dampen the incentives of mobile operators to independently improve their networks and services.

The network sharing agreements between T-Mobile CZ, CETIN and O2 CZ did not strike the right balance for Czech mobile users,” said Vestager. The issue began in 2016 when the EC raised its concerns about competition stifling from network sharing agreements between T-Mobile CZ, PPF-owned O2 Czech and telecoms infrastructure division CETIN. The companies then presented concessions in 2021, which the EC has now put  into effect that will keep “the benefits of network sharing”.

To address the concerns the companies will modernise mobile network equipment to enable more flexible independence for the two sharing parties in specific radio frequencies, remove technical and financial incentives for unilateral deployments, limit information exchange, and extend the geographical scope of the agreements. These commitments will be enforced until October 28, 2033.

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