The European Commission is expected to give the go-ahead to two mobile phone operators to share the costs of building their third generation mobile infrastructure in the UK.

The approval would mean German group T-Mobile and the UK company mm02 could combine operations in Germany and the UK, saving up to $5bn (£3.2bn).

The two companies have got preliminary regulatory approval to co-operate in Germany and are optimistic that they will get the green light to co-operate in the UK as well.

"We expect that we'll get approval for Britain as well," a T-Mobile spokesman said.

A decision is expected soon, a spokeswoman for the Commission said.

Pushing the roll-out

Several European telecom operators landed themselves in huge debt when they bought expensive third generation mobile licences, amid concerns they would never see the hoped-for returns.

They have faced additional problems - share prices have plunged and there has been a shortage of handsets.

A spokesman for T-Mobile said - if approval is confirmed - the two companies would combine base stations, antennae and network parts in an effort to save money.

A European Commission spokeswoman admitted there had been fears that the co-operation agreements would be anti competitive, but the co-operation agreements have been drafted in a way that addresses these concerns.