EC accepts commitments of T-Mobile, O2, CETIN on network sharing

Brussels/Prague, July 11 (CTK) - The European Commission (EC) has accepted the commitments offered by Czech mobile operators T-Mobile and O2 and telecom infrastructure provider CETIN to settle allegations of restricting competition related to their network sharing agreement, the EC said in a press release today.

Sharing infrastructure is common practice among operators that is widespread in many countries, said Klara Zavadilova of PPF Telecom Group, which includes O2 and CETIN.

"It allows operators to ensure the sustainability of the development of quality telecommunications services, especially at a time of growing user demands in the mobile data segment," she told CTK.

The EC's decision may have an essential impact on the method of building mobile networks in Europe, T-Mobile said.

It is now finally possible to fully focus on the further development of 5G networks and continue to work on building the much-needed digital infrastructure in Czechia, said T-Mobile Czech Republic CEO Jose Perdomo Lorenzo.

CTK has reached out for comment to Czech operator Vodafone, on whose initiative the investigation started.

The EC started investigating the network sharing agreement between T-Mobile, O2 and CETIN in 2016, and in 2019 it said that according to its preliminary conclusions, the agreement restricted competition. Last year, the companies offered measures to settle the allegations.

The measures promised will be to the benefit of Czech mobile users, said EC Executive Vice-President Margrethe Vestager, in charge of competition policy. The measures include mobile network modernisation, among other things.

CETIN and T-Mobile's network sharing agreement includes cooperation and joint building of mobile network infrastructure.

The EC's decision has a positive impact on the overall efficiency of investments in the telecommunications sector in Czechia and the commitments adopted will enable faster development of the infrastructure, the companies said.

T-Mobile, O2 and CETIN started their cooperation in 2011. A network sharing agreement allows operators to cut costs and simplify network development. It is usually beneficial for consumers but it can have a negative impact on competition.

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