The agreement was made in accordance with industry common practices, both in the European Union and outside this area, and it was a natural evolution of the previous forms of sites sharing between the two mobile operators, announced the two operators in a press release.
The network sharing agreement will enable the two companies to continue the investments in technology upgrades with national coverage.
The efficiencies created by the deal will enable the parties to invest in expanding 4G coverage, as well as in covering the “white” areas in rural regions, according to the press release.
Each of the two companies will continue to run independent spectrum and will retain strategic control and completely differentiated core networks, such that the parties remain totally independent and provide their services to customers on an individual basis.
Orange Romania and Vodafone Romania will continue to actively compete with each other in all products and services. Both companies will have access to a common grid of sites which will eliminate the unnecessary duplication of the network and will bring significant environmental benefits, according to the press release.
Ţuca Zbârcea & Asociaţii acted as lead advisor to Vodafone Romania, on all aspects of the project, including defining, structuring and implementing the contractual framework necessary for the conclusion of a network sharing agreement with its local competitor – Orange Romania.
“From a legal perspective, the matter involved an extensive analysis on the applicable regulations in multiple areas of law such as Corporate/Commercial, Regulatory, Competition/Antitrust, Telecom/Electronic Communications, Real Estate and Finance, so as to determine the optimal mechanisms for the successful implementation of the agreement,” according to a press release of the law firm.
Ţuca Zbârcea & Asociaţii will continue to advise Vodafone Romania on any future developments in the implementation of the network sharing agreement with Orange Romania.
Orange Romania posted total revenues of EUR 449 million for the first half of the year ended June 30, and had 10.2 million clients.
Vodafone Romania posted service revenues of EUR 177 million for the quarter between April 1st – June 30th of the financial year 2013-2014. The company has 8.1 million mobile customers at that time.