Vodafone and Orange do it again: nobody expected the changes they will make

Vodafone and Orange are about to take a new step that will change the landscape of the telecommunications sector in Spain. After creating a joint venture to manage fiber optics, both companies are considering a new agreement. This time, the idea is to launch a company that will handle their mobile networks.

This process, which is still in an early stage of development, promises to have a significant impact on the market. Even users of both operators might notice this change.

Collaboration between Vodafone and Orange is Strengthened

Vodafone and Orange have demonstrated that collaboration can be a successful formula. After creating their fiber joint venture, both companies have been very satisfied with the results obtained so far. This success has led the operators to consider repeating the operation, but this time in the field of mobile networks.

According to the newspaper Expansión, they are exploring the possibility of creating a new joint venture to manage their mobile networks. This would allow them to maximize their resources and achieve significant savings. This company could include a third investor, as will happen with the fiber joint venture.

That third partner would have a percentage of the business. However, both Orange and Vodafone would still have a significant role.

Benefits for Both Operators

The benefits of this joint operation would be multiple for both operators. First, they would share infrastructures, which would allow them to save on operating costs. These savings would come, among other things, from the reduction in tower rentals, payments to suppliers for frequency management, and the optimization of maintenance work.

Additionally, by sharing resources, they could reduce the size of their workforces, which would help them adjust their labor costs. The creation of this joint company would also allow them to leverage the synergies between both companies. Vodafone and Orange could better coordinate their operations, improving the efficiency of their mobile networks and, consequently, the quality of their services.

The model they propose for the mobile network would be similar to the one they already apply with fiber. In the case of fiber, both operators created a joint venture in which Orange, through MasOrange, has the majority of the business. Vodafone, meanwhile, also plays an important role, although with a smaller share.

This scheme is working well. The operators are confident that the same formula will also work in the field of mobile networks.

This type of agreement is not new in the telecommunications world. But the fact that Vodafone and Orange are willing to strengthen their ties demonstrates that both firmly believe in the benefits of this collaboration.