Vodafone and Telef├│nica in share agreement

Normal 0 false false false EN-US X-NONE X-NONE MicrosoftInternetExplorer4 /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-qformat:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:11.0pt; font-family:"Calibri","sans-serif"; mso-ascii-font-family:Calibri; mso-ascii-theme-font:minor-latin; mso-hansi-font-family:Calibri; mso-hansi-theme-font:minor-latin;} Mobile phone companies Vodafone and Telef├│nica, which owns O2, have agreed to share their network infrastructures in the UK, Germany, Spain and the Irish Republic to save millions in operating costs.   The companies will share masts and other equipment, but Matthew Key, chief executive of Telef├│nica Europe said, ÔÇ£we will still compete... in terms of services for customers." Telef├│nica admitted "the current economic situation was a catalyst".   Under the agreement, the companies will jointly build new sites and consolidate existing ones, allowing them to roll out enhanced services more quickly.   The move should provide customers with wider network coverage with fewer masts, and mobile broadband to a wider area of the UK.   Michel Combes, chief executive of Vodafone Europe, added that the two firms would continue to process and transmit signals on a separate basis.   Vodafone already has a similar tie-up with France Telecom's Orange in the UK and Spain. Combes said in a conference call that he didn't expect any competition or regulatory issues to arise from the deal.   Vodafone announced 500 job cuts last month, and is looking to implement ┬ú1 billion of cost reductions. It has also scrapped pay rises and bonuses for its 10,000 UK staff, and told its sales reps to keep their cars for longer.   News of Vodafone's decision in the UK comes a few days after Sony Ericsson issued a disastrous profits warning as the global appetite for handsets weakens. Finish mobile giant Nokia has also revealed plans to cut 1,700 jobs.     *┬á┬á┬á┬á┬á┬á┬á┬á┬á *┬á┬á┬á┬á┬á┬á┬á┬á┬á *