Mobile operator mmO2 has said that it is unlikely to spend GBP8 billion on building out its 3G networks in Europe. The company, which operates in the UK, Germany, the Netherlands and Ireland, now expects that 3G rollout will cost under GBP4 billion in total.
mmO2, which is currently rebranding its operations under the O2 name, expects to spend GBP1.2 billion this year. This compares with GBP1.6 billion in the previous financial year.
The savings come partly because of network sharing – operators are teaming up, instead of building networks on their own. At the same time, major infrastructure suppliers such as Nortel, Ericsson and Nokia have cut their prices due to the collapse in demand.