Quam stumps up EUR150 million to conclude dealings with E-Plus

20 Dec 2002

Quam, the defunct German mobile alliance between Telefónica of Spain and Finland’s Sonera which failed in July this year, has agreed to pay EUR150 million in compensation to KPN of the Netherlands for withdrawing from a joint venture to construct a 3G network. Telefónica and Sonera set up the agreement with E-Plus, KPN’s mobile unit in Germany, in September 2001. The two planned to jointly develop a UMTS network including the sharing of antennae sites, aerials, transmitters and radio network controller equipment, but closed down Quam in July this year due to concerns over the market and a poor take-up for its 2G service. KPN, which had hoped to realise significant savings by sharing network rollout costs, has said it will exercise its right to take over Quam’s individual UMTS sites if they fit into its network rollout plan.

Germany