Orange and Vodafone to merge networks

[3g-g]

Read on...

http://www.forbes.com/business/feeds...fx3406814.html

[Ben]

Vodafone and France Telecom's Orange are planning to merge their UK mobile phone networks in a deal designed to cut costs and bring new 3G services to a greater proportion of their combined 32 mln UK customers, the Guardian reported.

The deal, which could be announced within days, is understood to be focused on the two companies' 3G networks, but in future could extend to sharing of their older networks where coverage in remote areas is patchy, the newspaper added without naming sources.

[Ben]

No offence intended, Orange chaps and chapesses... but I'm not sure I want Vodafone's 3G network to have anything to do with Orange's given my past experienes!

Still, the coverage potential is droolsome.

[3GScottishUser]

This makes a lot of sense for both operators but it remains to be seen if Ofcom will warm to it. It's not the first time two networks have arranged to share network resourses as Vodafone and 02 already have combined services in many remote areas of the Scottish Highlands where duplication would have been simply unviable.

The combination of Orange and Vodafone's 3G capacity and coverage would make a very strong compeditior for the others and if allowed may be the catalyst for one of the others to acquire and integrate 3's network to speed up coverage and improve capacity.

Maybe the above has been designed to bring about such a move and force others to consolodate ruling out the arrival of any new UK player. I suspect there is more than one reason for this new development and maintaining control between 4 big International companies probably has a lot do do with it.

[Ben]

I wonder if the regulator will body-block this move with a big, fat no?

Potentially I think the deal could be allowed to go ahead provided both networks meet their own 80% population coverage requirement in the specified time. It might not take too much convincing, given the current climate for 3G usage and the returns on it for operators, for the regulator to allow that remaining 20% of coverage to consist of sharing.

Edit: The Reg is now weighing in http://www.theregister.co.uk/2007/02...afone_network/

[Hands0n]

The new company could be a Network Rail of the airwaves? Perish the thought. It all looks good on paper, and the financial department will love it. But what of the much maligned Customer? What, if anything, is in it for us?

Better coverage? *laughs down sleeve*