Vodafone and 3 to share networks
Industry sources say the two mobile operators will save about €250m each under the strategic partnership, which will see 3 and Vodafone creating a 50/50 joint venture company to share their physical network.
The company is expected to be fully operational from the autumn and will be headquartered in Dublin, with 80 employees transferring from Vodafone Ireland and 3 Ireland to the entity.
The two companies will be sharing infrastructure in over 2,000 locations across the country, but they will continue to run the core network capabilities and service platforms independently.
This strategic partnership is the first of its kind in Ireland.
Vodafone Ireland chief executive Jeroen Hoencamp said the joint venture was about remaining competitive. “Securing future investment for technologies in a competitive market is critical to maintaining a sustainable business,” he said.
“We believe this partnership will place Vodafone in a stronger position to commit to future investment in our network, and the products and services we provide to customers.”
The consolidation of networks in Ireland is part of a European-wide trend that has seen a number of operators enter into agreements to share their infrastructure.
Vodafone, has already entered into a similar agreement with Telefonica SA’s O2 unit in Britain.
European operators are increasingly relying on network-sharing deals to lower costs after regulators blocked some merger and takeover attempts.
The Irish communications regulator ComReg said such joint ventures may have positive benefits.
“ComReg notes the joint venture announcement by Vodafone Ireland and 3 Ireland today of a strategic partnership to share their physical network and site infrastructure at approximately 2,000 locations across the country,” the body said.
“While not commenting on the specifics of this particular case, ComReg is — in general and in line with its statutory remit — open to considering collaboration proposals of this kind as potentially such initiatives may have positive benefits.”
The chief executive of 3 Ireland, Robert Finnegan, said the move would be good for consumers.
“Around the world, operators are adopting a network sharing and consolidation strategy that delivers cost efficiencies and rapid network expansion with the roll out of new technologies such as LTE, whilst still competing fiercely on customer service and acquisition.
“Today’s announcement is significant for Irish consumers — jointly we’re creating the largest physical network in Ireland with the best network quality and service,” he said.
