T-Mobile And 3 Seal Landmark Network Sharing Deal

Thu, 20 Dec 2007

Mobile phone operators T-Mobile and 3 have unveiled a network sharing deal that has the potential to provide the companies with the UK’s largest high-speed wireless network .

The infrastructure deal - the first between mobile operators in the UK - will create national coverage for 3G and HSPDA services across the UK by 2009 and by sharing the costs is expected to save both operators a combined sum of £2 billion pounds in capital and operating expenditure over the next 10 years.

However, both operators have insisted the infrastructure sharing deal should not be seen as a first step towards a possible merger.

A 50:50 joint venture company called Mobile Broadband Network Limited has been set up to supervise the creation and operation of the new service, which will begin on New Year’s Day.

T-Mobile and 3 will share 13,000 mobile phone mast sites, which could enable a high speed network covering 98 per cent of the population by the end of 2009.

The HSDPA technology that will be utilised by the network, also known as 3.5G, will provide download speeds of up to 7.2 megabits per second - presenting users with a comparable web-surfing experience to some fixed-line broadband services on offer.

Traditionally, UK mobile operators have concentrated their 3G infrastructure investment in cities and large towns, resulting in the lack of availability of wireless broadband in many rural areas. However, the landmark agreement between 3 and T-Mobile should now provide a solution to this issue.

Commenting on the deal, 3 UK CEO Kevin Russell, said: This market-leading initiative will accelerate the adoption of new services in a timescale each of us could not have achieved on our own."

"It also enables us to cost effectively meet customer demand for faster speeds, wider coverage and greater capacity."

T-Mobile UK chief executive Jim Hyde added: From 2008, customers can expect to have access to high-speed 3G services in a greater number of locations than we can currently serve over our existing infrastructure ."

"By collaborating with 3 UK, we can achieve this quicker and with greater economy - that’s a win-win in anyone’s language."

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