BT and Vodafone are rumored to be teaming up to share 3G networks.
BT is under tremendous pressure to reduce its GBP30 billion debt. Issuing rights, perhaps up to the value of GBP10 billion it is suggested, is just one approach. However, given the current telecoms climate even low-priced rights might fail if the company cannot show how it is investing in its future.
A deal with Vodafone is an interesting one for BT. Instead of standing on the cliff edge looking down the chasm, the company is at last doing deals so it can help to make a bridge. Vodafone is probably is in a better position than most operators to go it alone and build its 3G infrastructure. But still makes sense to share the costs. In addition, joint UMTS networks will easily cope with the traffic well into the future. Although this is speculation for the moment, if the partnership goes ahead it will raise a lot of interest from other operators as a possible strategy to replicate.
