Vodafone and O2 to Enter Network-Sharing Deal

According to the latest news on the Web, Vodafone and O2, the leading mobile phone operators in the UK, could soon make a deal for sharing their network infrastructure in the country. The arrangement between the two carriers could include sharing mobile tower sites, along with network equipment such as base stations, yet it might also include spectrum sharing.

Currently, Vodafone is known to have similar network-sharing agreements with France Telecom’s Orange. The deal between Vodafone and O2, a subsidiary of Telefonica, might drive Orange to join a network-sharing agreement currently established between Deutsche Telekom’s T-Mobile and 3, a carrier owned by the Hong Kong-based Hutchison Whampoa.

According to FT, the deal between Vodafone and O2 is likely to help the two companies make significant savings in capital and operating spending. At the same time, the agreement could prove to be the solution to a radio spectrum dispute that could prevent the government from providing broadband Internet access to any household by 2012.

One of the Vodafone UK business representatives said, “We regularly review our plans to ensure Vodafone UK is best placed to take advantage of network-sharing schemes now and in the future.” The deal between Vodafone and Orange only includes sharing of sites, but not of network equipment as well.

Orange stated that it was considering opportunities “which could see us open up additional bilateral or multilateral partnerships with other operators.” While O2 previously said that it was skeptic about entering network sharing agreements with other mobile phone operators, it seems that the company is now reconsidering its position on the mater.

At the same time, the deal between the two companies is likely to help the government in its attempt to solve a spectrum dispute between carriers over the 900MHz band. This spectrum would help extend broadband access in rural areas in the country.