As had been speculated, Vodafone Ireland and Three Ireland have announced a strategic partnership agreement to share their physical network and site infrastructure at over 2,000 locations across the country. The agreement creates a joint venture company that will be equally owned. The announcement states that both companies will continue to run the "intelligent elements of the network "separately, including core network capabilities and service platforms, as well as managing their own radio equipment and spectrum independently.
The companies have said that each will benefit from increased purchasing leverage, an increased fibre footprint and the opportunity to expand mobile network coverage for customers.
Consolidation of network sites and the transmission infrastructure of competing telecommunications companies is underway industry-wide, across many markets, according to the pair. Under the agreement, duplicate sites will be decommissioned, and each company will have access to the other’s sites. Both companies will continue to remain independently responsible for what technology and spectrum is deployed on a site-by-site basis and what standard of service customers experience. Each operator retains the flexibility to invest in dedicated sites and equally to choose the pace and degree of new technology deployment according to the level of service each company plans to deliver.
"Securing future investment for technologies in a competitive market is critical to maintaining a sustainable business," said Jeroen Hoencamp, CEO Vodafone Ireland. "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.
"Around the world," said Robert Finnegan, CEO, Three Ireland, "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. As a result of this agreement we expect to be able to deliver the latest technologies to our customers faster than ever before. This new joint venture combines the best of both networks and will be the smart choice for the savvy mobile customer."
The new company is expected to be fully operational from the Autumn and will be headquartered in Dublin. The managing director will be appointed from an independent pool of talent and the new company will have its own management board. Approximately 80 employees will transfer from Vodafone Ireland and Three Ireland to the new joint venture company after a consultation period. These will include employees that currently work in the radio and transmission teams, the Network Operations Centre, and some support roles.
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