Vodafone UK and Orange UK have confirmed plans to share Radio Access Networks (RANs), including sites, masts and base stations, in an attempt to cut costs. The two companies have signed non-binding heads of terms outlining the principles of sharing their respective networks.
The proposal allows the two companies to continue managing their own traffic independently; retain full responsibility for the quality of service they offer their respective customers; and to remain competitors in the UK mobile wholesale and retail markets.
The project outlines plans for the two networks to be combined over a number of years, and covers both existing and new build of the companies 3G networks. For 2G, the heads of terms commits to exploring opportunities as technical solutions become available.
This represents an important step in the evolution of the UK mobile market says Orange UK CEO, Bernard Ghillebaert. As the industry matures, we must look at new ways to serve our customers, and this provides a common sense approach to network roll out and management in the twenty-first century.
Vodafone CEO Nick Read adds:
This proposal is industry leading and will enable the two companies to remain vigorously competitive against each other and the market, while realising the proven benefits of network sharing, notably faster roll out of high-speed mobile services in the future, and the earlier introduction of innovative products.
The companies hope the move will enable them to reduce the total number of masts needed in the future to enable customers to use their mobile devices. The combined networks would therefore have a smaller environmental footprint and would involve reduced capital and operating expenditure, which will enable more investment in innovative products and services.
Both Orange and Vodafone stress, however, that competition between the two companies will be unchanged, as the core network would remain within the control of each company, enabling each operator to continue offering differentiated products, services and prices within the UK market. Some specific areas of coverage, such as corporate customer in-building coverage schemes, would remain outside the share, and each company will remain free to add additional coverage for its sole use over and above the combined network.
Orange UK and Vodafone UK are currently in discussions regarding the appropriate vehicle within which to manage, maintain and build the radio access network for both companies. The process is being led jointly by Vodafone UK Chief Technical Officer, Paul Wybrow, and Orange UK VP of Business Support, Steve Aumayer.
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