Three may have safeguarded its future in Ireland after agreeing a network sharing deal with Vodafone, Informa Telecoms & Media research analyst Francesco Radicati says.
The carriers revealed Friday they will establish a joint venture company to run their respective infrastructure at 2,000 sites in the country. While Radicati believes the move is desirable for Vodafone, he states it could be a life saver for Three in the market.
“In essence, for Vodafone, as the largest player in the Irish market, this deal presents a cost-saving opportunity; for Three it’s an opportunity for survival,” he states.
Vodafone is seeking to cut costs in Ireland as a recession in the country puts pressure on its margins. Radicati notes that network sharing is becoming an increasingly attractive option for carriers as they “have to fight harder for profit,” amid growing costs. “We expect this trend to accelerate, as operators seek to cut costs by reducing infrastructure and capex where possible,” he says.