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Commission approves creation of pan-European telecommunications network

The European Commission has approved the creation of a pan-European telecommunications network dedicated to the cross-border transport of traffic, primarily along the rights of way of railway undertakings. The network is being created by the Hermes joint venture which is made ...
The European Commission has approved the creation of a pan-European telecommunications network dedicated to the cross-border transport of traffic, primarily along the rights of way of railway undertakings. The network is being created by the Hermes joint venture which is made up of: GTS Hermes Inc., a subsidiary of the Global TeleSystems Group; ten European national railway undertakings; and Racal-BR Telecommunications Ltd.

Hermes will initially supply point-to-point services to public network operators, carrier consortia, cellular telephone companies, and other authorized telecommunication operators. In its second phase, following liberalization of telecommunications markets within the EU, Hermes will operate a full pan-European network.

The Commission considered that the concentration would not result in a dominant position and is compatible with the Single Market on the grounds that:

- Hermes would be in competition with major operators who are all equally or more powerful;
- Hermes customers would all be strong well-informed companies able to limit its market power.
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