NMa Approves Cooperation between Dutchtone and Ben in Construction of UMTS Network

The Netherlands Competition Authority (NMa) has given its approval to the proposed setting up of a joint venture by Dutchtone and Ben. This joint venture will construct and administer parts of the UMTS network of Ben and Dutchtone. NMa has given its approval because this cooperation is limited to those parts of the network that hardly have any effect on the quality of the network and the services which will ultimately be offered. The competition between the parties will not be appreciably restrained by this form of cooperation.

The construction of a UMTS network involves considerable investment. Many telecommunications companies are burdened by large debts. Through this joint venture, Dutchtone and Ben aim to reduce the investment and operating costs involved in the construction of a network. For consumers this means quicker implementation and less of an impact on their living environment, since fewer masts will be required. NMa has taken into account the fact that this is a young market, in which the success that can be achieved and the development of UMTS services are still uncertain. The fact that Dutchtone and Ben are two smaller players in the area of telecommunications services also played a role. In addition, Dutchtone and Ben may independently determine whether they grant third parties access to the network.

The notified joint venture satisfies the criteria that have been set out in the policy document, "Joint Construction and Operation of Parts of UMTS Networks" ["Gezamenlijke aanleg en gebruik van UMTS-netwerkonderdelen"], published by NMa, OPTA and the Directorate-General for Telecommunications and Postal Services (DGTP)on 26 September 2001 (see: www.nma-org.nl).