NOS and Vodafone to share mobile infrastructure in anticipation of 5G strategy

NOS and Vodafone to share mobile infrastructure in anticipation of 5G strategy

Telecommunications operators continue to place their peers on the board regarding the 5G implementation strategy in Portugal. The three main companies (Meo, NOS and Vodafone) revealed the maximum amount they would be willing to pay, as being fair for the spectrum license, at around 48 million euros.

NOS and Vodafone have formalized a partnership for the sharing of mobile infrastructure, through a letter of intent. The objective is to share their assets at a national level, in order to guarantee greater efficiency and speed, in a sustainable way, the coverage of the Portuguese territory in the advent of the frequency auction for 5G. The companies believe that the agreement will benefit their customers, in terms of coverage and quality of service, even if they fully maintain their strategic independence.

The partnership between the companies thus responds to the call left by ANACOM on the possible conditions for sharing infrastructure and co-investment by operators. Co-investment from companies or wholesale investment solutions makes perfect sense and it is good, said Joo Cadete de Matos. According to the president of ANACOM, the issue of 5G has raised some controversy in Portugal, but in the case of a sector in which "the profitability of communications must also evolve and adjust to demand (…), it becomes if it is essential to see the virtues or shared options or options of wholesale uses ".

The topic on infrastructure sharing proposed by ANACOM has always been the subject of crispness, a topic that has "irritated" Vodafone Portugal's CEO, Mrio Vaz, because it calls into question the investment that the company made in the mobile network, adding that the level European of the group the best in Europe, then Holland. In his view, the network that differentiates the operator. Vodafone takes a step back in its thinking and joins one of its rivals in Portugal. "We have thus consolidated the principle that we have always advocated for an efficient model in the development of next generation networks and we have taken another very important step in our commitment to Portugal and the Portuguese, of building a Digital Society, said Miguel Almeida, NOS CEO in the statement.

Even so, companies leave in "clean plates" that they will maintain their independence in defining and providing services to their respective customers, not sharing the spectrum, in addition to maintaining strategic control of their respective networks. The definitive agreement to negotiate the exclusivity regime will be made in June 2020.