T-Mobile and Orange have signed an agreement to share radio
access networks in Poland. The deal covers management, planning,
support, development and maintenance of the joint networks, which will
be operated by a newly-formed company NetWorkS!. The agreement will
enable T-Mobile and Orange to reduce operating and investment costs in
Poland. It also allows both operators to expand their network
infrastructure, improve coverage and implement new technologies.
Polska Telefonia Cyfrowa, operator of the T-Mobile network, and PTK
Centertel, operator of the Orange network, signed an agreement today to
share their radio access networks. The agreement covers management,
planning, support, development and maintenance of the joint networks.
These tasks are going to be performed by NetWorkS!, a newly-formed
company in which both operators hold an equal 50% of shares.
"The agreement signed today and the creation of NetWorks! are a major
step forward in the development of the telecommunications market in
Poland. Joint management and extension of the network infrastructure of
both operators will soon provide customers with tangible benefits,
such as improved network coverage and network quality, as well as
access to the latest technologies. Thanks to this co-operation each
operator will be able to invest funds more effectively and to expand the
network infrastructure faster,” said Miroslaw Rakowski, CEO of Polska
Telefonia Cyfrowa. "It is also significant that Poland’s two leading
telecommunication firms - which fiercely compete against each other and
will continue to do so - are able to join forces for the benefit of the
market and the customers. Together, we will manage the best and the
largest mobile infrastructure in this country," said Rakowski.
"Our ultimate goal has always been to ensure customer satisfaction.
This agreement will enable us to provide our users with better network
coverage across the country and significantly improve the quality and
ease of use of their mobiles, laptops and tablets. This is one of our
key strategic imperatives - we will deliver high quality services to
all of our customers whilst significantly reducing our financial
expenditure," said Maciej Witucki, CEO of TP Group. "In a highly
demanding market that is still consolidating, this partnership gives us
a keen competitive edge over other players."
One of the main goals of this co-operation is to create top-class
mobile networks in Poland, and - consequently - to achieve a visible
improvement in the quality of services and an extension of their range.
This will allow both operators to:
- Improve network coverage, both geographically and indoors,
thus supporting the provision of new services, including broadband
access to mobile Internet for an increasing number of customers,
- Ensure high network quality based on appropriate agreements
which guarantee operational quality thanks to the joint control
over the new company exercised by both operators,
- Reduce operating costs and investment expenditures.
The most significant benefits are related to short-term acceleration
of the modernization of the entire RAN network to the most modern
technology, compatible and supporting latest standards. Upfront
investment in the first three years will allow to save up to 29% of the
total RAN cost on a longer-term basis, in line with the reduction in
total number of sites.
Thanks to the co-operation, the operators will be able to eliminate
duplicating base stations in close proximity, and share the remaining
stations across the country. The co-operation will be based on a
similar number of base stations for each operator. Despite the overall
reduction of base stations, each operator will be able to serve its
customers using approximately 10 000 stations - a significant increase
on the current situation, where PTC has around 7 000 stations, and PTK
around 6 400 stations. Additionally, the reduction of the overall number
of stations in Poland will enable the companies to optimize network
maintenance costs and allow further technology investments for the
benefit of customers and the environment.
Due to the scale of the undertaking, the implementation of the new
network solutions will take place gradually until the year 2014, with
the first positive effects to be visible in selected regions of the
country in the first half of 2012. Intensive work will continue over
the coming months to develop an adaptation planof the operators'
networks and the preparation of a tender procedure for the supply of new
equipment. The undertaking is to be realized by NetWorkS!, to which
the operators will transfer their employees responsible for radio
networks planning, building and maintenance
The agreement is set over a term of 15 years, with an option to
extend. The RAN sharing agreement between PTK Centertel and PTC will be
limited to technical aspects. Each party remains the owner of their
networks and frequencies. Both operators will continue to compete in
the wholesale and retail market of telecommunications services under
their existing brands.