Vodafone, Orange in cost cutting agreement talks

The UK’s largest telecommunication company and majority shareholder in Ghana Telecom, Vodafone is considering an agreement with Orange, another mobile phone service provider in the UK that could make the two companies share technology, engineering and maintenance costs, the Guardian newspaper has reported.

The two telecom companies already share costs at some base stations in the UK, but the new agreement when reached, would enable the two telecom giants to integrate their 3G networks in the UK.

The report quoted Vodafone’s chief executive, Vittorio Collao as saying that Vodafone is looking to cut costs by GB£1 billion, approximately US$1.46 billion by 2011.

The deal follows a similar agreement between telecom rivals T-Mobile and 3, all of the UK. The two in January 2008 formed Mobile Broadband Network Ltd., (MBNL), a 50/50 joint venture aimed at integrating the companies’ 3G networks.

By Emmanuel K. Dogbevi