Telefónica to share 5G network in UK with Vodafone

This 'non-binding' agreement will allow for the new mobile technology to roll out 'much more quickly', says Telefónica.

It will be the first time Telefónica has entered into a network-sharing partnership of this type – if it goes ahead.

The contract was awarded in April last year for the sum of £317.7 million (about €362m), at 40MHz on a 3.4GHz band.

Telefónica and Vodafone are said to be analysing options for offering a shared fibreoptic network and exploring ways of optimising the passive transmission tower grid they each own 50% of.

Whether or not the deal goes ahead depends upon the two companies' agreeing over the small print, finalising the legal aspects and gaining all the necessary authorisations.

It is likely Spain's National Competition and Values Markets Commission (CNMV) will approve the joint venture, as Telefónica appears to have already received the unofficial nod after writing to the regulatory board.

Telefónica stressed to the CNV that this alliance would allow its UK-based brand, O2, and Vodafone jointly to offer 5G services to more customers within a wider geographical area and at a lower cost.

As well as increasing connection speed and capacity, 5G technology reduces website response times by around a millisecond – enough to allow for 'driverless driving' and even remote surgical operations to become a reality.

Other than O2 via Telefónica and Vodafone, the UK's other main operators are EE Limited, which is owned by the BT group, and Hutchinson, which each hold 40MHz and 20MHz of the 3.4GHz band respectively, meaning the Vodafone-Telefónica fusion would instantly put them in control of a larger market and network share.

The deal, if it comes off, is expected to allow the network-sharing operation to start later this year.

In the photograph by Telefónica, the firm's representative Jerónimo Vílchez demonstrates how to make a video-conference call via 5G technology.