and Vodafone, two of the world's largest telecommunications operators, today
announced a wide-ranging strategic program to share mobile network assets across
selected European operations. As part of the collaboration, Telefónica and
Vodafone are actively exploring opportunities to cooperate in related areas such
as the provision of transmission services.
Telefónica and Vodafone will use the agreements to aid the roll out of their
respective networks, enhancing service quality for customers in the longer term.
The agreements will also reduce the environmental impact of both companies' roll
out activities, due to the consolidation of existing sites and joint build of
The program is expected to deliver significant business benefits in the
process, including the generation of cost savings amounting to hundreds of
millions of pounds for both companies over the next 10 years.
The infrastructure sharing initiatives are broadly expected to enable both
- Offer enhanced quality of service levels within the network footprint to
improve customers' mobile experience as well as support the delivery of
services such as mobile broadband to a greater number of customers across a
wider coverage area
- Reduce the environmental impact of the network by lowering the number of
sites required by each company
- Reduce network operating costs
- Continue to manage their traffic independently
- Jointly build new sites where opportunities exist
Under the program, customers in these selected markets can expect to benefit
from long-term improvements to coverage, particularly for services such as
mobile broadband. By reducing network costs, both companies will be able to
continue to invest in developing innovative products and services for customers.
The joint building of new sites and/or consolidation of existing 2G and 3G
mast sites, with one site housing the equipment of both companies where
previously two would have been used, is expected to lead to a significant
reduction in the total number of masts in operation and reduced environmental
impact, compared to both companies expanding their networks separately:
- Germany: Both companies to share existing 2G and 3G sites. Shared
masts can also be used for microwave backhaul.
- Ireland: Both companies to open all network sites for sharing by
the other party. New build will also be conducted jointly where roll-out
plans are aligned.
- Spain: Both companies to extend existing site share agreement
from 2007, which includes the shared usage of power, cabinets and mast. To
date 2,200 sites are shared under this agreement. During 2009 and 2010
additional sites will be included.
- UK: Both companies to focus on joint build of new sites and
consolidation of existing 2G and 3G sites.
The collaboration will also enable both companies to enhance service quality
within the network footprint at a faster rate than before, and help to deliver
services such as mobile broadband to a wider population.
Where opportunities exist, long-term cost and operational efficiencies will
be realised through jointly building new sites and consolidating existing masts
There will be reduced capital and operating expenditure arising from the fewer
number of sites required, with significant savings anticipated by both companies
over 10 years.
In addition, further areas of co-operation are actively being explored on a
market by market basis, such as sharing of transmission infrastructure, among
Cheers ~ Arne