8th Feb 2007 07:55
Vodafone Group Plc08 February 2007 VODAFONE UK AND ORANGE UK PROPOSE RADIO ACCESS NETWORK SHARE 08 Feb 2007. London. VODAFONE UK and ORANGE UK today announce their intention toshare Radio Access Networks (RANs), delivering long-term benefits to customers. The two companies have signed non-binding heads of terms outlining theprinciples of sharing their respective RANs. The proposal allows the twocompanies to: * Continue managing their own traffic independently * Retain full responsibility for the quality of service they offer their respective customers * Remain competitors in the UK mobile wholesale and retail markets The project outlines plans for the two RANs to be combined over a number ofyears and covers both existing and new build of the companies' 3G RANs. For 2G,the heads of terms commits to exploring opportunities as technical solutionsbecome available. Bernard Ghillebaert, CEO of Orange UK, said: "This represents an important stepin the evolution of the UK mobile market. As the industry matures we must lookat new ways to serve our customers and this provides a common sense approach tonetwork roll out and management in the twenty-first century." Nick Read, CEO of Vodafone UK, adds: "This proposal is industry leading and willenable the two companies to remain vigorously competitive against each other andthe market, while realising the proven benefits of network sharing, notablyfaster roll out of high speed mobile services in the future and the earlierintroduction of innovative products." Shared efficiencies and reduced duplication Long-term shared efficiencies are likely to be realised by jointly managing andmaintaining the RANs, as well as the future roll out of RANs of both companies.By combining the two RANs, the long-term intention is to reduce the total numberof masts needed in the future to enable customers to use their mobile devices.The combined RANs would therefore have a smaller environmental footprint. From abusiness perspective, there will be reduced capital and operating expenditurearising from the fewer number of sites required. These efficiencies will enablemore investment in innovative products and services, benefiting customers. Better mobile coverage for over 30 million* customers Customers will benefit from the long-term improvements to coverage. The coverageof both operators would eventually be combined to offer improved andcomplementary coverage, particularly in rural areas. As a result customers wouldbe able to use their phones in more places across the UK. RAN sharing willensure that both companies remain committed to the faster roll out of high speedservices. Continued competition and differentiation in the UK mobile market Competition between the two companies will be unchanged as the core networkwould remain within the control of each company, enabling each operator tocontinue offering differentiated products, services and prices within the UKmarket. Some specific areas of coverage, such as corporate customer in-buildingcoverage schemes, would remain outside the share and each company will remainfree to add additional coverage for its sole use over and above the combinedRAN. Orange UK and Vodafone UK are currently in discussions regarding the appropriatevehicle within which to manage, maintain and build the radio access network forboth companies. The structure and terms of any agreement are expected to bedetermined in the coming months. Vodafone UK's Chief Technical Officer, PaulWybrow, and, Orange UK's VP of Business Support, Steve Aumayer, are to lead thisprocess. * combined total of Vodafone UK and Orange UK customers - ends - NOTES TO EDITORS Principles of RAN sharing: The form of network sharing proposed by the partiesrelates only to the radio access part of the network (the RAN). The RANincludes mast, antenna, sites, site support cabinet and power supply as well asantennae, combiners and transmission links, Nodes B (3G), BTS (2G) and the radionetwork controllers which are linked to the core network. The latestdevelopments in technology mean that base stations can now be configured totransmit more than one operator's signal, which leaves each operator free todetermine its own service offering using its own spectrum. About Orange UK As at the end of December 2006, Orange UK had over 17 million customers (15.3million active mobile customers and over 2 million internet customers).Orange is a key brand of the France Telecom Group, providing mobile, broadband,fixed, business and entertainment services across Europe. It is one of theworld's leading telecommunications operators with more than 153 millioncustomers on five continents. About Vodafone UK Vodafone UK has 16.9 million customers and is part of the world's largest mobilecommunity offering a wide range of voice and data communications. The company iscommitted to providing mobile solutions that allow both consumer and businesscustomers to make the most of now. For more information, please visitwww.vodafone.co.uk. For further information: Vodafone Group Investor Relations Media RelationsTel: +44 (0) 1635 664447 Tel: +44 (0) 1635 664444 Orange UK Stuart Jackson / Scott Jacobson, Orange UK Media Relations, +44 870 373 1500 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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