A few hours ago it emerged that T-Mobile and Three are to share their UK mobile phone networks in an attempt to avoid the substantial costs of individual expansion. An official announcement is expected later today.
Both companies have been looking to proceed with a regional expansion of their high-speed wireless networks, and by combining their networks they will be able to provide greater coverage for users of third-generation services such as internet browsing, video calling, and music downloads.
Hannes Wittig, an analyst at JPMorgan Chase & Co, in London said the following:
“When you collaborate you can reduce the costs…Both T-Mobile and 3 have coverage issues in the U.K. and it would be sensible for them to share the costs of regional expansion. It’s something you have to do to stay in the game in the U.K.”
One would hope that the costs saved by T-Mobile and Three from combining their networks would be passed down to the consumer in the form of cheaper tariffs.