TEF Telefonica SA

   By Adria Calatayud 
 

Vodafone Group PLC (VOD.LN) and Telefonica SA (TEF.MC) have agreed to strengthen their existing network-sharing partnership in the U.K. to include 5G, the companies said Wednesday.

The telecommunications companies said this will allow them to deploy 5G faster, over a larger geographic area and at a lower cost.

Vodafone and Telefonica's O2 U.K. business will seek to deploy their own separate radio equipment on around 2,500 sites in larger cities to achieve greater network flexibility to meet customers' needs, the companies said.

Both parties plan to upgrade their networks with higher-capacity optical-fiber cables and are exploring options around their future transmission operating model, the companies said.

Vodafone and O2 said they intend to explore a potential monetization of CTIL, the joint venture that owns and manages their passive tower infrastructure, after the new arrangements have been concluded.

The companies have signed a non-binding heads of terms, which remains subject to an agreement on the detailed terms and regulatory approvals, which they expect to conclude during 2019.

Write to Adria Calatayud at adria.calatayudvaello@dowjones.com

(END) Dow Jones Newswires

January 23, 2019 02:47 ET (07:47 GMT)

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