The infrastructure sharing deal will save each network hundreds of millions of pounds over a ten-year period, with similar sharing arrangements in Germany, Spain, Ireland and discussions ongoing in Czech Republic.
The deal will reduce the environmental impact by lowering the number of sites needed by each company, which in turn reduces network operating costs. O2 and Vodafone will continue to run network traffic independently, however.
For future network expansion, the two networks will work together to jointly build sites where the opportunities exist. This will also allow each operator to expand quicker than working independently.
The deal is in addition to similar deals with T-Mobile and 3, as well as sharing agreement between Orange and Vodafone that is rumoured to be ending, in favour of an Orange tie-up with T-Mobile.