Vodafone, Telefonica to share Europe network sites

Vodafone and Telefonica agreed to share network infrastructure in four European countries to meet a surge in demand for mobile broadband, while saving hundreds of millions of pounds in costs. The deal announced on Monday, the biggest of its kind to cover multiple countries, is a sign of the urgency to save money and the success of flat-rate data packages in stimulating demand as well as a more relaxed attitude towards equipment ownership. The deal covers Germany, Spain, Ireland and Britain and may be extended to the Czech Republic, the two companies said. They will share sites, equipment including masts, and power supply, but will keep their own radio equipment and vendors. "It's a real transformational deal," Michel Combes, chief executive of Vodafone Europe, told journalists on a conference call. Matthew Key, his counterpart at Telefonica, said: "The current economic situation was a catalyst."