Ovum estimates £1bn savings for Vodafone/Telefonica by 2015
Emeka Obiodu, senior telecoms strategy analyst at Ovum believes both parties can expect to save about 25% of their network costs:
"The beauty of the deal is that both Vodafone and Telefonica can look forward to saving at least 25% of their network costs. Considering that Vodafone UK spent £575 million in capex in the year ended March 31 2012, this could lead to savings of over £100 million a year. Over the three years from now until 2015 when both parties expect to achieve 98% indoor population coverage across 2G and 3G, the combined potential savings would be in excess of £600 million.
Elsewhere, Obiodu, expects that, ultimately, at least 50% of all LTE rollouts will use shared networks:
"Indeed, we are not surprised at this. Since 2009, Ovum has warned that the financial realities facing mobile telcos means they have no choice but to share their networks. We posited that most countries will end up with not more than two networks. Going forward, we also expect that at least 50% of all LTE network rollouts in the world in the next five years will involve some form of active network sharing."
Ovum provides clients with independent and objective analysis that enables them to make better business and technology decisions. Our research draws upon over 400,000 interviews a year with business and technology, telecoms and sourcing decision-makers, giving Ovum and our clients unparalleled insight not only into business requirements but also the technology that organizations must support. Ovum is an Informa business
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