Telefonica Germany Eyes E-Plus Network Sharing to Cut Costs

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Telefonica SA’s German unit, planning an initial public offering in Frankfurt next week, is considering sharing its mobile-phone network with Royal KPN NV’s local E-Plus business to lower costs.

“When people were looking at a potential coming together of Telefonica Deutschland and E-Plus, there was some significant analysis of potential network synergies,” Rachel Empey, chief financial officer of Telefonica Deutschland Holding AG, told investors on a conference call yesterday. “Quite a lot of those synergies might be available through network sharing.”