Cologne-based QS Communications (QSC) and the German subsidiary of the Tele2 Group have revealed that they will form a new joint venture company, Plusnet, which will operate a national DSL network. Under a cooperation contract which will run until at least the end of 2013, QSC will own 67.5% of Plusnet and Tele2 the remainder. QSC will contribute its nationwide DSL network to Plusnet while Tele2 will make a EUR50 million cash contribution to finance further network expansion. This will enable Plusnet to expand its existing network of over 1,000 central offices to a total of nearly 2,000 by year-end 2007. The new network will number among Germany’s largest broadband networks, reaching more than half of all households, as well as some 70% of all corporate locations that are suited for VPN solutions. Splitting the network expenses between shareholders is expected to produce EBITDA cost savings of EUR10 million a year at QSC from 2007 onwards.