Vodafone and 3 reach network sharing agreement

A network sharing agreement has recently been reached by two of the leading mobile operators in the UK. Vodafone and 3 have just said that they are going to be sharing networks in Ireland. The deal has not yet officially been announced but it is expected in the very near future, the information about the deal has come from an inside source on the late stage negotiations.

This is the second network deal that Vodafone have been involved in in recent weeks and it comes after they made the announcement that they are going to be extending the networking sharing deal that they have with Telefonica.

Fred Huet, from Greenwich Consulting has stated that, “Mobile operators are facing tight pressure on their profit margins and this comes at a time when they are having to think about investing more money in 4G networks, which is obviously a very expensive process.” It has been estimated by the analyst firm, Ovum, that the deal between the Telefonica and Vodafone is going to save them a combined total of around £100million.

Emeka Obiodu, from Ovum comments. “We estimate that over the next three years the savings for the companies are going to be significant. In 2015 it is expected that both of these mobile phone companies are going to be covering around 98% of the population with either 3G or 2G coverage. The significance of this is expensive and this deal will save both companies money in the long term.”

It is estimated that the deal that is going to take place between 3 and Vodafone is going to save both companies an estimated £200 million. This saving is going to be spread over the next five years and, if the deal continues, these savings will continue into the future as well.