Following unsuccessful merger talks in early 2012, Greek mobile operators Vodafone Greece and Wind Hellas have now agreed to share 2G and 3G networks in rural and some urban areas. The companies intend to form a new technology company to manage the…
Following unsuccessful merger talks in early 2012, Greek mobile operators Vodafone Greece and Wind Hellas have now agreed to share 2G and 3G networks in rural and some urban areas.
The companies intend to form a new technology company to manage the radio access network.
The 15-year agreement will enable both companies to cut costs, Vodafone said in a statement, noting that customers will benefit from better coverage and data performance.
The agreement is subject to the approval of the Hellenic Telecommunications and Post Commission.
While the companies did not provide financial details, Greek media have reported that their investment totals more than €200m and that the new company will have about 600 staff.
In early 2012 both companies had held merger talks, but in February 2012 Vodafone announced that the plans had been abandoned.
At the time, a Vodafone spokesperson attributed the decision not to merge the companies – Greece’s second and third largest mobile operators – to “a number of factors”, including the uncertainty in the Greek market.
However, there was considerable speculation in European media that antitrust regulators opposed the proposed merger. A network sharing agreement is more likely to secure regulatory approval.
