Proximus and Orange Belgium join forces
11 Luglio 2019 - 5:58PM
Proximus and Orange Belgium join forces
Proximus and Orange Belgium join
forces
to develop the mobile access
network of the future
Brussels, July 11th, 2019 –
Dominique Leroy, CEO of Proximus and Michaël Trabbia, CEO of Orange
Belgium, have signed a term sheet today to reach a mobile access
network sharing agreement* by the end of the year. The aim of such
an agreement is to enable both companies to meet the increasing
customer demand for mobile network quality and deeper indoor
coverage. It will also allow a faster and more comprehensive 5G
roll-out in Belgium. The objective is to bring relevant benefits
for end-users, enterprises and society in general while preserving
a sound and effective competitive environment.
Mobile access network sharing: better
networks and quality of service while keeping strong
differentiation
Mobile access network sharing is implemented by
many operators worldwide and in Europe. By sharing parts of the
mobile network access infrastructure, operators can increase the
efficiency of network operations and ensure sustainable investments
in new network technologies. Mobile access network sharing between
Proximus and Orange Belgium will allow a faster and more
comprehensive 5G roll-out in Belgium, covering also the 2G, 3G and
4G technologies. The shared network will improve coverage, with the
consolidated number of mobile sites expected to be about 20% higher
compared to each operator’s current stand-alone radio access
network.
While sharing their mobile access networks, both
companies will continue to have full control over their own
spectrum assets and operate their core networks independently to
ensure a service and customer experience differentiation.
Benefits for the customers and the
environment
The main benefits for end-users and society will
be the improvement of the overall mobile experience thanks to a
wider outdoor coverage, deeper indoor coverage and a faster 5G
roll-out.
Network sharing also generates important
environmental benefits as it reduces the number of antenna sites,
leading to less visual burden, and decreases the total energy
consumption by approximately 20%, which is equivalent to the
consumption of 10.000 households in Belgium.
It will also enable both companies to realize
operational cost efficiencies allowing them to sustain the growing
investment needs in network capacity, driven by continued
exponential data growth, while also accelerating 5G roll-out and
improving service quality.
Creation of a joint venture, while
competing independently on services and prices
Subject to the final agreement, the shared
mobile access network will be planned, built and operated by a new
50-50 owned joint venture, in line with common practices in several
other EU markets.
Proximus and Orange Belgium will continue to
commercialize their products and services independently and compete
at retail, enterprise and wholesale levels.
Next steps in the coming
months
In the following months, dedicated teams from
both operators will further define in more detail all modalities,
including the organizational model of the new joint venture, to
reach a final network sharing agreement by the end of the year. The
purpose is to start the preparatory work in the first quarter of
2020.
Dominique Leroy, CEO of Proximus: “The signing
of the term sheet is an important step in reaching a final mobile
access network sharing agreement between Proximus and Orange
Belgium. It will allow us to embark on a faster and broader 5G
roll-out while improving mobile network capacity and coverage to
the benefit of our customers and while keeping a strong and
differentiated customer experience. It will help us to realize
operational cost efficiencies that will enable us to sustain future
networks roll-out and fuel digital investments.”
Michaël Trabbia, CEO of Orange Belgium: “Mobile
access network sharing is a trend in Europe which benefits
consumers, as it enables more efficient investments to cope with
the increasing data consumption. The timing of this mobile access
network sharing agreement is important as it will allow us to
accelerate 5G roll-out, while bringing significant environmental
benefits by reducing the combined energy consumption by 20%.”
- OBEL_PR_2019 07 11 UK
- OBEL_CR_2019 07 11 UK
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