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BT ‘in talks’ over O2 buy-back from Telefonica

British telecoms giant BT said on Monday that it was in "preliminary" talks to buy back its former domestic mobile phone division O2 from Spanish peer Telefonica.

Published: 24 November 2014 16:42 CET

BT 'in talks' over O2 buy-back from Telefonica

Telefonica is considering "all strategic choices" for its British operations, including O2, as it seeks to reduce its debt. John D Mchugh/AFP

BT added in a statement that it had been approached by shareholders from two operators — O2 and an unnamed group — with a view to buying their UK mobile business.

The other operator was understood to be EE, according to sources close to the matter. EE is a joint venture between Orange of France and Deutsche Telekom of Germany.

The four biggest mobile phone groups in Britain are O2, EE, Vodafone and Three, which is owned by Hong Kong's Hutchison Whampoa.

Back in 2002, BT demerged its O2 division, formerly known as BT Cellnet, before it was purchased by Telefonica in 2005 for £17.7 billion ($27.8 billion).

Last week however, Telefonica indicated that it would consider all strategic choices for its British operations, including a possible sale.

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'We're running late on this': Deutsche Bahn promises better Wifi on German trains by 2026

A Wifi hotspot sign is displayed on the side of a German train in Hamburg. Photo: picture alliance / dpa | Rainer Jensen

Deutsche Bahn chairman Dr. Richard Lutz made the promise in a press conference on Wednesday, where he announced a new partnership with German telecommunications operator Deutsche Telekom to improve the Wifi on trains by 2026.

“Trains are not just a means of transport to our customers – they are an office, conference room, and place to relax all at the same time,” he said.

“To do all that, our passengers rightly demand that there be gap-free coverage with the mobile communications network. We are now laying the foundations needed to achieve this.”

He appeared together with the CEO of German telecommunications operator Deutsche Telekom, Tim Höttges, and the Minister for Transport, Andreas Scheuer (CSU), in the Bahn’s headquarters, high above Berlin’s central train station.

Deutsche Bahn’s rail network covers a total of 33,400 kilometers, 7,800 kilometers of which are major routes which are used by all ICE trains as well as main IC trains.

READ ALSO: Delayed train? Germany’s Deutsche Bahn to give online refunds for first time

Deutsche Telekom wants to supply these major routes with fast broadband by the end of 2024.

By 2025, the company aims to supply another 13,800 kilometers of heavily-travelled routes – used by more than 2,000 passengers daily – with consistently fast Wifi.

The rest of the train operator’s routes should then be competed by 2026.

A “radical improvement”?

The patchy signal along Germany’s railway networks has long been considered one of the weakest areas of the country’s telecommunications network.

In 2015, the government insisted that the networks take action to improve the poor Wifi network on trains by 2019 – but the operators continue to drag their feet.

According to a report by the Federal Network Agency, there are around 550 fewer antennas near railway tracks than are needed to provide consistent service.

In his opening conference remarks, Höttges expressed his discomfort at returning to the age-old topic: “We’re running late on this, I’m fully aware of that,” he told journalists.

Also attending the press conference, Minister for Transport Andreas Scheuer welcomed the new partnership.

READ ALSO: This new European high-speed rail network will take you from Vienna to Berlin in four hours

“The time of ‘I have no network’ must come to an end,” he said. “Mobile surfing and telephony must be possible everywhere and at all times.”

Though the proposed changes are set to take another five years to be completed, Deutsche Bahn and Telekom described the plans as a “radical improvement” on the current situation.

Vocabulary

Wifi access – WLAN-Zugang

Railway lines – (die) Bahnstrecken or (die) Bahnstrecke

Connection – (der) Anschluss

Dead zone – (das) Funkloch

We’re aiming to help our readers improve their German by translating vocabulary from some of our news stories. Did you find this article useful? Let us know.

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