Partner Article

Vodafone and Telefónica UK merger confirmed

The Office of Fair Trading (OFT) has cleared a merger deal between mobile network provider Vodafone and Telefónica UK.

The telecoms giants announced plans in June to pool their network infrastructures to form a joint national grid with over 18,500 sites.

Each network will operate across the enhanced grid, to provide improved service and better coverage to customers.

Both companies will continue to run independant, competitive services, but also wished to establish a network partnership and strengthen the “digital divide” between built up and rural areas.

OFT has decided not refer the merger to the Competition Commission after it found “no cause for concern” with the deal.

Deals that create a market share of over 25%, or are worth over £70m, are investigated by OFT, however the transaction between Vodafone and Telefónica UK did not raise objections.

Consumers will benefit from 2G and 3G coverage that will go out to 98% of the UK population by 2015.

4G services will also be rolled out quickly and efficiently to customers when they are become available, as the two companies lay foundations for the updated mobile broadband.

The venture will allow Vodafone and the Spanish firm to share masts and towers, while duplicate stations will be decommissioned.

Telefónica will take responsibility for the Eastern half of the UK, while Vodafone will be responsible for the maintenance of radio equipment in the Western half of the country, as each operator increases their site bases by 40%.

At the time of the deal proposal, Ronan Dunne, chief of Telefónica UK said: “This partnership is about working smarter as an industry, so that we can focus on what really matters to our customers – delivering a superfast network up to two years faster than Ofcom envisages and to as many people as possible.”

This was posted in Bdaily's Members' News section by Miranda Dobson .