O2 and Vodafone confirm network share

The operators will share networks and work on joint builds of new sites, as revealed by Mobile

O2 and Vodafone have confirmed the deal that will see them share mobile network assets across Europe. The partnership was revealed by Mobile at the start of this month (March).

Telefonica and Vodafone will use the agreement, which is expected to save ‘hundreds of millions of pounds’ over the next 10 years, to aid the roll-out of their networks. The two companies said the deal will pave the way for improved mobile broadband coverage across the UK.

In the UK, both companies will focus on joint build of new sites and consolidation of existing 2G and 3G sites.

Meanwhile, in Ireland, the operators will open all network sites for sharing by the other party.

In Spain, the operators will to extend existing site share agreement from 2007, which includes the shared usage of power, cabinets and masts. To date 2,200 sites are shared under this agreement and during 2009 and 2010 additional sites will be added. In Germany, the networks will share existing 2G and 3G sites.

Telefónica Europe CEO, Matthew Key, said: ‘In a fast changing business climate, operators need to look at different ways to serve customers both now and in the future. This industry-leading collaboration means that Telefónica and Vodafone will continue to compete strongly against each other in local markets, while giving our customers enhanced mobile coverage in more places, using fewer mast sites. This will also create significant benefits for Telefónica shareholders. We are actively exploring additional areas for cooperation and, by reducing our costs in areas of the business that customers don’t see, we can ensure that we invest in areas they truly value.’

Vodafone Europe CEO, Michel Combes, said: 'Vodafone has led the market in developing effective network sharing business models, and continues to drive the scale and scope of such agreements. This is a further example of Vodafone’s ongoing commitment to deliver the highest levels of service quality for our customers while delivering greater cost efficiencies to the business. This move will enable us to focus our resources on developing more innovative and market leading services while delivering on our pledge to reduce the environmental impact of our network roll out.’

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