T-Mobile, 3 U.K. Agree to Share British Networks, People Say

Deutsche Telekom AG and Hutchison Whampoa Ltd. agreed to share their high-speed wireless networks in the U.K., extending their reach and reducing investment costs, according to three people with knowledge of the accord.

T-Mobile, the wireless unit of Germany's biggest phone company, and Hutchison unit 3 U.K. will save money and time because the two would otherwise have to expand the networks on their own, said the people, who asked not to be identified because the deal isn't yet public. An announcement may come as early as today, they said.

The agreement provides both companies with more coverage for so-called third-generation services, also known as 3G, which allow Internet browsing, video conferences and music downloads. T-Mobile is the U.K.'s second-largest mobile-phone company by subscribers after Telefonica SA's O2.

``When you collaborate you can reduce the costs,'' said Hannes Wittig, an analyst at JPMorgan Chase & Co. in London. ``Both T-Mobile and 3 have coverage issues in the U.K. and it would be sensible for them to share the costs of regional expansion. It's something you have to do to stay in the game in the U.K.''

T-Mobile had 17 million customers in the U.K. at the end of September, making it Deutsche Telekom's third-largest wireless market by subscribers after Germany and the U.S. T-Mobile International had almost 114 million users across 11 European countries and the U.S.