BT's wireless business is in talks with potential partners in the Netherlands about sharing the cost of rolling out the next generation of mobile services in the country.
Having spent upwards of €120bn (£72bn) buying up licences to operate 3G networks, Europe's wireless companies are hoping to reduce the investment needed before they can start offering customers services such as fast internet access and video streaming on mobile phones.
Last month BT Wireless, which is due to be spun out of the telecom company in November, announced a deal with Deutsche Telekom to share investment in masts and base stations. BT Wireless's Cellnet will cooperate with Deutsche Telekom's One2One in Britain, while in Germany, BT's Viag Interkom unit and Deutsche Telekom's T-Mobil will work together.
Now BT is understood to have approached other operators in the Netherlands about a similar deal with its Telfort operation, which could result in there being just two networks built in the region.
BT Wireless chief executive Peter Erskine would not comment directly on the talks but admitted that the group is seeking partners throughout its European operations. "Everyone is talking to everyone at the moment," he said. "But I would not anticipate a deal before the autumn."
Network sharing has become increasingly important as Europe's leading wireless companies struggle with mounting debts and a slowdown in subscriber growth. Such deals present a headache to the manufacturers of telecom equipment, such as Ericsson of Sweden, however, who were looking for lucrative deals from all the operators rather than shared spending on networks.
Europe's governments have also been reticent about allowing operators to share their networks because of concerns about competition.
The German government was initially against allowing operators to share their networks, but grudgingly conceded the point to ensure widespread availability of 3G services in the country. The Dutch government dismissed an initial suggestion that one network be built in the country but is understood to be willing to accept that a minimum of two be constructed.
Analysts expect further deals to be forged in mainland Europe as operators ready themselves to launch 3G services next year.
ABN Amro analyst Jamie Mariani said sharing in the German market has been the focus until now, largely because of the size of the country and because it is so highly competitive. But talks are now being held across Europe.
"I anticipate network sharing will be a factor in the Italian and Spanish markets," he said. "Operators in all markets are now considering ways to reduce their network capital spend."
