Bertelsman dials into European mobile market

8.15am: German media group Bertelsmann is set for a major push into the European mobile phone market, writes Dan Milmo
  
  


German media group Bertelsmann is set for a major push into the European mobile phone market.

The group will become a "virtual mobile phone operator", sending music, print and TV content to customers' handsets.

The third generation mobile networks will provide customers with high-speed internet access and video images.

The unveiling of Bertelsmann's plans comes just weeks after merger talks opened with UK music giant EMI, which could lead to the creation of the world's largest music company.

The multimedia powerhouse is bidding for space on next-generation networks in Germany, with the view to expanding across the rest of the continent and into the UK.

A Bertelsmann spokesman said: "We are going to look into several markets. We are talking to several providers with international links."

The spokesman confirmed that Bertelsmann was negotiating with Deutsche Telekom, which bought a UK mobile phone licence earlier this year through its One2One subsidiary. Other companies involved in talks include Viag Interkom, which is owned by BT.

The company's music arm, BMG, has already signed a peace agreement with rogue internet site Napster, and music will play a key role in the new venture.

"It is the same as with Napster. We are trying to set up a platform which music customers can use," added the spokesman.

Third generation networks will not start operating in Germany until 2002, but today's announcement underlines the scale of Bertelsmann's new media ambitions.

The privately owned company controls the Cdnow, bol.com and barnesandnoble websites, and surprised the corporate music community with the Napster deal.

Earlier this month, Bertelsmann formed a strategic alliance with Napster to develop the website into a secure, membership-based service.

The current system lets web surfers download music files from the net without paying a subscription or royalties. So far, rival music companies have refused to follow Bertelsmann's lead.

 

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