KPN abandons E-Plus sale

NEWS Dutch telco KPN has abandoned plans to sell its German mobile offshoot E-Plus. The company added that it would go public on a 3G network-sharing agreement in Germany this week, despite the tragic events in the US. It was rumoured that the mobile company would merge with either Group 3G or Mobilcom, two of the six organisations with German 3G licences, in order to reduce KPN's debts. Other possibilities included a sale to Orange, the mobile operator recently acquired by France Telecom. The network-sharing agreement to be announced will be with Group 3G, owned by Spain's Telefonica Moviles and Sonera from Finland. Last week, Telefonica Moviles stated it had signed an agreement of understanding with KPN about E-Plus's union over networks with the Spanish parent's Group 3G. However, KPN was waiting for a third partner to join the party before it agreed to the deal. Telfonica Moviles has said the agreement will save Group 3G 40 per cent of its network related expenditure that amounts to $5.6bn. This is the second German infrastructure sharing deal, the first being between BT and Deutsche Telekom. Yesterday the damaged shares of all three telcos rose. KPN was up 24 per cent, Telfonica Moviles rose 8.6 per cent and Sonera went up by 4 per cent.