European mobile operator mmO2 has said it may change the infrastructure suppliers for its 3G networks. The company may pick a single operator throughout Europe to provide handsets and network infrastructure.
Unlike many of its rivals, mmO2 owns all its divisions – in the UK, Germany, the Netherlands and Ireland – outright. This means it can pick a single supplier without having to approve it with minority partners. However, it has awarded the UK contract to Nortel, the German contract to Nokia and the Dutch contract to Ericsson.
Renegotiating the contracts could prove tricky. However, if mmO2 can come to a satisfactory arrangement, the cost savings could be considerable. This will be welcome, given the high prices it has paid for its UK and German licenses.