Telefónica
UK and Vodafone UK have announced a plan to begin pooling the basic parts of
their network infrastructure to create one national grid that runs each
operator’s independent spectrum.
According
to a press release, the plan will prove a boon to customers by creating two
competing networks that will be able to offer indoor 2G and 3G coverage,
targeting 98 percent of the UK population by 2015.
The
companies said the plan will also speed the rollout of LTE service, laying the
foundations for two competing 4G networks up to two years before the
anticipated regulatory requirement of 98 percent population coverage by 2017.
The plan is subject to the outcome of Ofcom’s auction of the wireless spectrum
required for 4G services.
Ofcom
is the UK’s independent regulator of the telecommunications industry in that
country.
Ofcom’s
has proposed for one of the 4G licenses at 800MHz to have an indoor coverage obligation
of 98 percent of the population (at a speed of at least 2Mbps) by 2017. Subject
to the outcome of the forthcoming spectrum auction, the two operators intend to
offer indoor 4G coverage targeting 98 percent of the UK population at speeds of
at least 2Mbps by 2015, but both carriers say the actual speed received by
customers is likely to be many times faster.
“One
physical grid, running independent networks, will mean greater efficiency,
fewer site builds, broader coverage and, crucially, investment in innovation
and better competition for the customer,” said Ronan Dunne, CEO Telefónica UK,
in a statement.
Telefónica
UK and Vodafone UK propose jointly to operate and manage a single network grid
in the UK that will run two competing nationwide mobile internet and voice
networks. Both companies will retain complete control over their wireless
spectrum, intelligent core networks and customer data.
The
carriers stress that they will continue to actively compete with each other in
all products and services, enabled through the ‘intelligent’ parts of their
networks.
A
new 50/50 joint venture company will be created through the consolidation of
both Telefónica UK and Vodafone UK’s existing basic network infrastructure,
including towers and masts, which will be transferred to the joint venture or
decommissioned over time. Under the proposals, both companies will have access
to a single grid of 18,500 masts representing an increase in sites of more than
40 percent for each operator. The joint venture will also be responsible for
the building of new sites needed to extend coverage into rural and remote
areas.
Telefónica
UK and Vodafone UK are currently engaged in discussions with Ofcom and intend
to establish the joint venture and network sharing arrangement later this year,
following the satisfactory conclusion of those discussions.
