O2 owner Telefonica and Vodafone are aiming to rollout 4G faster by joining their mobile networks into one shared grid in the UK.
Firms will create shared network for improved coverage and speedier 4G rollout
The mobile operators will pool their basic infrastructure to improve coverage and speed up the rollout of the forthcoming 4G service. The firms are planning to achieve two competing nationwide 4G networks up to two years ahead of Ofcom's requirement of 98 percent coverage by 2017.
See also: Broadband advisor.
Ronan Dunne, CEO of Telefonica 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."
O2 and Vodafone will combine their networks into one jointly operated grid which will run their independent spectrums. The network will be made up of 18,500 sites representing an increase in sites of more than 40 percent for each operator.
Both companies have promised to achieve 98 percent of indoor population coverage across 2G and 3G by 2015.
Guy Laurence, CEO of Vodafone UK said: "It will create two stronger players who will compete with each other and with other operators to bring the benefits of mobile internet services to consumers and businesses across the country."
O2 and Vodafone intend to establish the joint network later this year pending the authorisation from Ofcom, with which discussions are already underway.
Pirate Bay blocked by O2 and BE Broadband - zdnet.co.uk
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3 hours ago by adamjarvis on Why I Dislike Ubuntu - Reason #37O2 and Vodafone team up to provide wider network coverage - Techradar.com
A new agreement has been struck between Vodafone and O2 to share base stations throughout the UK.
The move will see the two large networks sharing 18,500 sites throughout Britain, and will enable a 40% increase in site locations for each operator.
The upshot of this is wider coverage for their customers – but don't think this is the same as the tie-in with Orange and T-Mobile, which merged to form a new company in the shape of Everything Everywhere.
They're still our rivals
O2 and Vodafone have explicitly stated they will continue to operate as full competitors despite sharing the site locations – this move is a continuation of the project that started over two years ago.
The two networks are also claiming the move will help deploy 4G networks sooner and more efficiently, as achieving the Ofcom target of 98% of indoor 4G coverage by 2017 up to two years earlier than that deadline.
However, it's unlikely such a move will mean an acceleration of the 4G auction happening as that's still in the hands of Ofcom - O2 has told TechRadar this move is to improve coverage, reach, efficiency and allowing a further investment in innovation.
I'll trade you Wales for Scotland
The two networks have also drawn a massive line down the middle of the UK and divvied up the base station management, with O2 nabbing the east and Vodafone the west – although somehow O2 has managed to consider Northern Ireland part of the east side.
So what's the upshot? A more efficient network for both Vodafone and O2 customers and 10% fewer sites around the UK as the redundant masts are decommissioned. Whether this will result in cost savings for the consumer remains to be seen – we can but hope.
Telecom confirms forecast, delists from NYSE - National Business Review
Telecom says it remains on track to deliver H2 FY12 adjusted ebitda guidance of around $560 million and net earnings "near the top end of the $160m to $190m guidance range" (the ebitda and net profit forecasts it made at its half-year report on February 24).
The company says while the market became more competitive, cost cutting and cheaper finance has seen earnings stay on track.
Telecom shares [NZX:TEL] took a 4% hit on Tuesday, falling from $2.54 to $2.44 as Telstra confirmed it was in talks to sell TelstraClear to Vodafone, potentially creating a competitor of significant scale.
The stock regained some of the lost ground on Wednesday and Thursday (closing at $2.50), but did not enjoy any pop as a secondary rumour emerged that Telstra was clearing the decks for a run at Telecom.
Most analysts polled by NBR did not see a buyout fitting Telstra's strategy. Quiet trading indicated investors shared that opinion.
Nevertheless, a well-placed source at a major network infrastructure provider told NBR ONLINE yesterday that Simon Moutter, due to start as CEO on September 1, is already focusing heavily on his new role, quipping "he's already started".
Earlier, acting Telecom CEO Chris Quin told NBR he would be talking to Mr Moutter regularly during the transition period.
Today, in a statement to the NZX, Mr Quin said" "During the first quarter of calendar 2012 there was an increase in competitive activity in the fixed line and mobile markets. However, despite increased competition, our focus on reducing costs sees us on track to deliver ebitda guidance as planned."
CFO Nick Olson added that "net financing costs are lower than expected so we expect to finish the year near the top of the range. The decrease in financing costs relates to additional finance lease income post demerger, which will continue into the future."
Mr Quin said that "competitors have been very active with a variety of new offers, which has increased customer churn".
"We are firmly focused on responding and improving customer retention - for example, adding value to our products such as increased data caps on broadband plans.
"In mobile, we remain focused on growing postpaid connections by leveraging the strength of the XT network, but we are seeing continuing decline in our prepaid customer base prior to the expected shutdown of the CDMA network in July this year," he said.
At its February 24 half-year results briefing, Telecom said 639,000 customers remained on its CDMA network, which is due to be closed on July 31 (down from around one million at Telecom's previous six-month report).
The company said the 639,000 customers accounted 11% of its revenue.
Chief executive Paul Reynolds said on a conference call to analysts that "only" 300,000 had actively used the CDMA network in the past month.
This morning, Telecom refused to anser an NBR ONLINE query about how many customers remained on the CDMA network. A spokesman said the migration was "on track".
NYSE delisting
Telecom also said it intends to delist its American Depositary Receipts (ADRs) from the New York Stock Exchange. Its shares and ADRs will not be listed or quoted on another national securities exchange in the US.
Telecom ADRs last day of trading on the NYSE is expected to be July 9 and the delisting is expected to become effective on July 19.
The delisting, in time, will reduce administration costs and complexity associated with the NYSE listing. ADRs equate to 15% of Telecom's listed shares, and therefore Telecom will retain an ADR programme in the US, on the "over-the-counter" market to enable investors to trade ADRs.
Trading on the OTC market is expected to start on July 10. Telecom’s ordinary shares will continue to be listed and traded on the NZX and ASX.
‘We are leaving no stone unturned in our drive to reduce costs and complexity, and delisting from the NYSE is a logical step in this process," Mr Olson said.
"However, we remain committed to our US investor base and will retain high standards of corporate governance and continue to provide comprehensive and transparent financial reporting."
Telecom also intends to permanently deregister and terminate its reporting obligations under the Securities Exchange Act of 1934 in the event that it meets the criteria for deregistration.
Shares were flat at $2.50 in early Friday morning trading.
Vodafone and O2 to tag team mobile networks for 4G [updated] - Computer Business Review
Vodafone and Telefonica (O2) have announced that they will be pooling their network resources to create a single national grid for 4G, countering rival Everything Everywhere. [updated: Ofcom comment]
The two companies already co-operate on building new sites, but this new national grid will extend the relationship further - enabling the companies to reduce costs and compete with Everything Everywhere, the UK's largest mobile operator.
VodaO2 or O2Fone? Vodafonica? Telefone won't work.
Both O2 (Telefonica UK) and Vodafone will be able to run 2G, 3G and the soon to be launched 4G on the same network, while retaining each other's independent spectrum - following the outcome of the year end 4G auction, to be administered by market regulator Ofcom.
Both companies will retain complete control over their wireless spectrum, core networks and customer data. Both have said they will continue to actively compete with each other in all products and services.
The plan will allow the two companies to reach their 2G and 3G coverage obligations in 2015, ahead of Ofcom's 2017 requirement of 98% coverage. It also means 4G can work to this same schedule.
"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," Telefonica UK's CEO Ronan Dunne said.
"One physical grid, running independent networks, will mean greater efficiency, fewer site builds, broader coverage and, crucially, investment in innovation and better competition for the customer."
A new 50/50 joint venture company will be created based around both companies basic network infrastructure - following the model of Deutsche Telekom's T-Mobile and France Telecom's Orange merger into Everything Everywhere.
It will include towers and masts, which will be transferred to the joint venture or decommissioned over time. Both companies will have access to a single grid of 18,500 masts representing an increase in sites of more than 40% for each operator. The joint venture will also look at building new sites to extend coverage into rural and remote areas. The companies expect there will be a 10% overall reduction in sites.
This cost cutting is essential, as mobile users move from away from the industry's cash cows - voice calling and texting - to extensive data usage and 'Over-the-top' services such as Skype to perform the same functions. This means operators are seeing expenditure on bandwidth expansion increase, while margins fall.
This kind of solidarity from the two bitter rivals would have been unthinkable just 18 months ago, and may be a response to Everything Everywhere's (owner of Orange and T-Mobile) proposal to launch 4G on its existing spectrum prior to the auction. Ofcom has repeatedly delayed its decision, after initially supporting the proposal.
4G is of particular importance for rural areas, as it will offer broadband speeds over cellular networks and reduce the digital divide.
"This partnership will close the digital divide for millions of people across the country and power the next phase of the smartphone revolution. It will create two stronger players who will compete with each other and with other operators to bring the benefits of mobile internet services to consumers and businesses across the country," said Vodafone's CEO Guy Laurence.
Telefónica and Vodafone are currently engaged in discussions with Ofcom with the intent of establishing the network JV later this year, following the satisfactory conclusion of those discussions.
If the proposal follows the pattern that the Everything Everywhere merger did, then O2 and Vodafone may be required to give up existing spectrum as part of an anti-competitive deal. It also suggests that the two companies are hedging their risks over concerns that Ofcom may indeed allow EE to launch 4G this year.
An Ofcom spokesperson told CBR that it was currently going through the details of the proposal, and was not in a position to discuss any regulation that might follow.
"Ofcom is currently engaged in constructive discussions with both Telefónica UK and Vodafone UK in relation to their proposed joint venture and network sharing arrangement. We will carefully consider the appropriate way forward taking into account our duties as a competition authority," he said.
Ofcom was also unclear as to what the status of EE's 4G proposal is.
"In terms of your questions around EE's application to refarm its 1800 MHz spectrum, the consultation responses raise a number of detailed issues that Ofcom must now consider carefully. It is important that we make robust decisions, particularly where we may have to defend them in court. We will publish a statement on the application as early as possible."
Three Mobile, owned by Hutchison-Whampoa has threatened to quit the UK if it does not get favourable treatment from Ofcom to counter EE and Telefonica-Vodafone's domination of the sector. It is already in a network share JV with EE called MBNL, and may leverage that arrangement for its own 4G purposes.
Ovum analyst Jeremy Green believes the move by the two mobile giants makes sense.
"We did predict this as early as 2008, when we said that most countries would end up with only two physical LTE networks. It follows on from the merger of T-Mobile and Orange in the UK into Everything Everywhere," he said.
"If Vodafone and Telefonica had not also embraced sharing in this way they would have been at a competitive disadvantage. As it was, they were able to build on and extend the relationship that they already had through Cornerstone, their existing joint venture. This sets them up well for the 4G rollout and will help them catch up on 2/3G rollout too."
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Telecom links in all Indian villages by 2014: BSNL - Deccan Herald
State-owned Bharat Sanchar Nigam Limited (BSNL) has undertaken an ambitious Rs.20,000 crore project to establish telecom links in all villages across India and to take e-governance to rural and far-flung areas in the next two years, a BSNL official said here Sunday.
"The Rs.20,000 crore project for the creation of a 'National Optical Fibre Network’ (NOFN) for providing internet and other telecommunications connectivity to villages has been launched recently. It would be completed by the next two years,” BSNL CMD R.K. Upadhyaya told reporters.
“Once the NOFN was created, it would help in offering governance, banking and health and other basic services online up to the villages and rural areas,” he said.
According to him, the tele-density in urban areas in India is almost 100 percent while in the rural areas, it is 37 percent.
“After NOFN, the existing tele-density would be increased to a great extent in the rural areas,” said Upadhyaya, who came here Saturday and held a series of meetings with Tripura Chief Minister Manik Sarkar and other senior officials.
The BSNL has also undertaken to improve the telecommunications connectivity in the northeastern region by upgrading the existing Optical Fibre Cable (OFC) network and hiring PGCIL (Power Grid Corporation of India Limited) and RailTel cable network, he said.
“The BSNL has laid OFC from Kolkata to (Bangladesh capital) Dhaka and the network would be further extended up to northeastern states in near future via Bangladesh,” he added.
Upadhyaya said that the BSNL has OFC network with some European countries, Nepal, Myanmar and Bhutan. “Earlier the link was put in place with Pakistan too but now it is non-operational.”
He said BSNL accounts to 80 percent of landline and 90 percent of broadband connections in the country, while around 30 percent of the nation's mobile connections are covered by BSNL.
During the past four years, the BSNL could not procure any GSM (Global System for Mobile Communications) equipment, he said, adding that tenders have been issued recently for 15 million GSM line connections.
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