Mobile phone networks O2 and Vodafone are planning to share their network infrastructures, in a bid to save millions of pounds in operating costs as the economic downturn continues. The new plan will mean that Vodafone and Telefonica (O2’s parent company) will share mobile network masts, as well as other equipment in the UK, Ireland, Germany and Spain.
Both companies reiterated that they will still be competitors and that there will be no competition issues, but admitted that the move was due to the current economic situation.
A statement by Telefonica Europe’s chief executive Matthew Key said: “We will still compete… in terms of services for customers”.
Vodafone already have a similar plan with the Orange mobile network in both the UK and Spain. Talking about the plan with Telefonica, Vodafone Europe’s chief executive, Michel Combes stated that the two firms will still be transmitting signals on a separate basis.
The new plan comes as Vodafone begins implementation of a £1 billion cost reduction plan, which has already seen 500 job cuts announced last month.