LONDON -- VODAFONE UK and ORANGE UK today announce their intention to share Radio Access Networks (RANs), delivering long-term benefits to customers.

The two companies have signed non-binding heads of terms outlining the principles of sharing their respective RANs. The proposal allows the two companies to:

Continue managing their own traffic independently

Retain full responsibility for the quality of service they offer their respective customers

Remain competitors in the UK mobile wholesale and retail markets

The project outlines plans for the two RANs to be combined over a number of years and covers both existing and new build of the companies' 3G RANs. For 2G, the heads of terms commits to exploring opportunities as technical solutions become available.

Bernard Ghillebaert, CEO of Orange UK, said: "This represents an important step in the evolution of the UK mobile market. As the industry matures we must look at new ways to serve our customers and this provides a common sense approach to network roll out and management in the twenty-first century."

Nick Read, CEO of Vodafone UK, adds: "This proposal is industry leading and will enable the two companies to remain vigorously competitive against each other and the market, while realising the proven benefits of network sharing, notably faster roll out of high speed mobile services in the future and the earlier introduction of innovative products."

Vodafone Group plc (NYSE: VOD)

Orange UK