Mobile phone rivals Vodafone Group Plc and Cellnet Mobile Communications Ltd have buried the hatchet in order to embark on a joint #46m initiative to bring Groupe Speciale Mobile digital cellular coverage to 370,000 people in the Highlands & Islands of Scotland. The link-up comes just as Cellnet sparked off a price war by slashing its prices by up to 30% – which helped knock Vodafone’s share value. The cuts are designed to increase its market share and weaken Hutchison Telecommunications Ltd’s Orange network, which has managed to sign up over 400,000 customers since starting operations back in April 1994. The digital cellular venture, which has received #4m in funding from the Highlands & Islands Enterprise agency and the Objective 1 European programme, will involve each company putting up #21m each over the next two years. The alliance is seen as the first of several, as both companies steel themselves against US competition. The two companies will share access to their combined 30 sites, and build at least 120 more. The project will bring 90% coverage to all A roads throughout the region, including coverage of the Orkney, Shetland and Western Isles. Vodafone said that the reason for the alliance was because the grant is dependent on their working together. We would have eventually got around to covering this area but it would have taken a lot longer to do it, the company said.
