Drillisch Gets Access To Telefonica Network In View Of E-Plus Acquisition

(RTTNews) - German telecommunications services provider Drillisch AG (DRHKF.PK) and Telefonica Deutschland Holding AG Wednesday announced that they have signed an agreement.

Under the deal, Drillisch's unit MS Mobile Services GmbH agreed to acquire 20% of the capacity of all mobile networks which will be under the control of Telefonica Deutschland following the consummation of the proposed acquisition of E-Plus Group. This is in addition to the capacity necessary to provide services to its existing customers hosted on Telefonica Deutschland's or E-Plus' networks.

Telefonica Deutschland Holding is part of Spanish telecom group Telefónica S.A. (TEF, TDE.L).

The companies noted that the 20% will be reached through a glide path mechanism over a period of 5 years. In addition, MS Mobile Service GmbH shall have the right to acquire additional 10% of such network capacity.

Under the deal, MS Mobile Services obtains, through a Mobile Bitstream Access model, access to the future joint network of Telefonica Deutschland and E-Plus as well as the existing and future technological developments offered on that network, which Drillisch can offer to its customers.

The agreement with Telefonica Deutschland will become effective only if the European Commission conditionally clears the acquisition of E-Plus by Telefonica Deutschland and confirms that the agreement complies with the conditions and obligations possibly attached to the approval of the proposed transaction. The decision by the European Commission with respect to the merger is expected in July.

Telefonica Deutschland Holding entered into an agreement relating to the acquisition of E-Plus Group from Koninklijke KPN N.V., Den Haag, on July 23.