12 May 2009

O2 and Vodafone to share network

we are hearing quite a mant gossips on A network-sharing deal between two of UK’s foremost mobile phone operators – O2 and Vodafone – appears to be on the cards! The companies are reported to be engaged in advanced-stage talks about a prospective sharing of their wireless network infrastructure in Britain.

Vodafone’s UK business said that the company wants to ensure that “Vodafone UK is best placed to take advantage of network- sharing schemes now and in the future.”

Insiders say that the deal under consideration would not only provide both the companies with substantial savings in capital and operating costs, it will also help resolve a row over radio spectrum, thereby facilitating government’s plans of providing broadband internet access to all households by 2012.

In fact, network-sharing appears to a practical decision since installation and maintenance of network equipment requires a lot of cash infusion. Keeping that aspect in mind, Telefónica’s O2 subsidiary and Vodafone are deliberating on measures for sharing the sites where mobile towers and base stations are positioned.

If the deal comes through, it would implicitly bring about a much-improved overall coverage, both in terms of quality and extent.

A more oblique affect of a deal between O2 and Vodafone – which already has a similar pact with France Telecom’s Orange – would be a prospective network-sharing agreement between Orange and Deutsche Telekom’s T-Mobile and Hong Kong’s Hutchison Whampoa-owned 3!

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