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Vodafone And O2 To Share Mobile Networks

Wed, 15 Apr 2009

Mobile phone firms Vodafone and O2 parent Telefonica are to join forces across Europe in a bid to significantly reduce costs and improve service quality.

Under the terms of the deal the operators will share a network infrastructure in Spain, Ireland, Germany, and the United Kingdom for the next ten years.

By consolidating exiting 3G and 2G sites, jointly building new sites for base stations within the UK and sharing infrastructure, the two companies hope to save millions of pounds in operating costs over the next decade.

According to the mobile giants, other benefits of the deal include extended mobile broadband coverage for areas not currently served well and better quality service for customers in currently covered locations.

Matthew Key, chief executive of Telefonica Europe, said the move would the collaboration would also offer a more sustainable product to those with environmental concerns.

"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," he explained.

Michel Combes, CEO of Vodafone Europe, added that two firms would remain rivals and continue to manage their mobile traffic independently of one another.
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