By Tim Ferguson, 8 February 2007 16:55
NEWS
Orange and Vodafone are proposing to share their 2G and 3G networks in the UK to cut costs and improve coverage.
The two operators predict the move could produce savings of between 20 and 30 per cent in capital and operating expenditure.
Other benefits outlined by the pair include a reduction in their combined "environmental footprint" - with fewer masts being required to support the networks - and improved network coverage.
John Delaney, principle analyst with Ovum, told silicon.com sharing the radio access networks could be a good move for the operators.
He said: "The potential savings are very big indeed. UK operators, in particular, are needing to focus on costs in the absence of any likely large-scale economies."
Delaney said the sharing agreement will improve coverage for customers of both operators but warned sharing 2G base stations across the UK will be technically very difficult.
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Both Orange and Vodafone will continue to independently manage their traffic and take responsibility for quality of service. They will also remain competitors.
Delaney said: "I don't see any reason in principle why sharing networks should reduce any amount of competition either on the retail or wholesale level."
Bernard Ghillebaert, Orange UK CEO, said the proposals provide a "common sense approach" to network rollout and management in the 21st century.
The exact structure and terms of the network sharing agreement will be finalised over the next few months, the mobile operators said.
Comments
There are 2 comments. Join the discussion
1. Dr John L Dimmock
Some sense indeed, sharing resources must be the answer but to waste those shared resources of 3G is a waste of time. Both companies should join together and run a true mesh network popping down the main masts and onto the fibre network – then you would see effective synchronous broadband which would improve with numbers of users
For many years we have run MetroCell – “radio for the short haul, glass for the long haul” in effect a packet based radio network that eventually ends up running over the existing Internet sub-set. True we need a licence at this time to work the frequencies and wattage 500mw that we do but the mobile phone companies have the capability of using the fatter 801 xx frequencies and are legally able to pole up to 4 watt
This would give everybody in the country a real broadband alternative, 10Mb synchronous TxRx and you are then really cooking on gas with all the very real paid for content facilities available to all
Dr John L Dimmock - Technical Director
Media Services Sussex Ltd
Metroweb Network Services
First Internet UK Ltd
MetroCell Ltd
http://media-services.co.uk
BN12 5JX - 01903 700155
2. anonymous
A National 3G network for all users.
You mean like the National BT network.
Who would have thought that this would become a national asset, just a shame it is in private hands....