Telefoncia Czech Republic is exploring multiple options for network sharing, but has declined to comment on speculation it may soon seal a deal with Vodafone’s local unit.
Telefonica’s and Vodafone’s Czech units are close to striking a network…
Telefoncia Czech Republic is exploring multiple options for network sharing, but has declined to comment on speculation it may soon seal a deal with Vodafone’s local unit.
Telefonica’s and Vodafone’s Czech units are close to striking a network sharing deal, which would see them combine their passive infrastructure under a joint venture, according to local newspaper MF Dnes today citing industry sources.
Under the agreement, Vodafone CR would reportedly pay Telefonica CR, which has the most extensive infrastructure, €40m (US$53m). The deal would save the latter’s indebted Spanish parent €152m (US$201.7m) over the next 15 years.
Commenting on the report, a Telefonica CR spokesperson said the company has been considering “a multitude” of options for network sharing but does not currently have a binding agreement of such a nature with any party other than T-Mobile CR.
Telefonica CR has shared part of its 3G network with T-Mobile CR for more than two years, which the spokesperson said has enabled the company to broaden its coverage and provide better quality services.
“Based on this experience and what we see in the rest of the world, we believe that network sharing is imperative to construct a network of highest possible quality. We are always looking for options to provide a better experience with our available resources.”
But the Telefonica CR spokesperson noted that network sharing deals are designed primarily to make network rollouts more efficient and are not relevant for spectrum acquisitions.
Meanwhile, a Vodafone CR spokesperson said that infrastructure sharing may be a “logical step” for the company in light of similar deals elsewhere in Europe. However, the spokesperson pointed out that Vodafone has not yet completed or agreed terms for a network sharing agreement in the Czech Republic.
Telefonica is the Czech Republic’s largest mobile network operator, followed by Deutsche Telekom’s T-Mobile and Vodafone.
In late July, the national telecoms regulator announced that it expects to launch its controversial 4G spectrum auction by mid-August. Local mobile operators have objected to proposed conditions offering incentives to new market entrants, such as reserved spectrum.
