Tuesday, January 6, 2009

Vodafone and Orange to share mobile broadband running costs

The Guardian reports that mobile operators Vodafone UK and Orange UK are considering an agreement that would see the two companies share technology, engineering and maintenance costs.

The two cellcos already share costs at some base stations in the country, but the new agreement is expected to integrate both operator's 3G networks. Vodafone's chief executive, Vittorio Collao, has stated that the operator is looking to cut costs by GBP1 billion (USD1.46 billion) by 2011.

The deal follows a similar arrangement between rival mobile broadband providers T-Mobile UK and 3 UK, which in January 2008 formed Mobile Broadband Network Limited (MBNL), a 50/50 joint venture aimed at integrating the company's respective 3G networks.

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