O2 and Vodafone have agreed a non-binding intention to strengthen their existing network sharing partnership ahead of a 5G rollout.
Background: The network sharing agreement (CITL) was established in 2012 to reduce costs for the two companies by network sharing around the UK. It is a 50:50 owned joint venture company that owns and manages the parties’ passive tower infrastructure and mirrors a similar agreement between EE and Three UK known as MBNL.
What is their intention? The new deal should enable both operators to deploy 5G faster and to reach a wider geographic area at a lower cost than if they were to act alone. Both parties will look to extend greater network autonomy in a number of larger cities by deploying their own separate radio equipment on approximately 2,500 sites (15% of towers outside of London).
What’s new? Vodafone and O2 said they intend to devolve additional activities to CTIL. The operators claim this will empower CTIL to take an “enhanced role” in the operation of the passive infrastructure. In addition they are exploring the prospect of delivering a “shared, future proof fibre” transmission network.
What is the significance? Ultimately both parties have suggested that they could sell CTIL. As part of this new agreement they said they would open up CTIL to new tenants for the towers and would open the door to “potential monetisation” of the asset.
