Orange, T-Mobile to team up on European networks
updated 05:45 pm EDT, Fri April 15, 2011
Orange, T-Mobile to save nearly $1b in Euro deal
Two major European telecommunications providers, T-Mobile's owner Deutsche Telekom and Orange's parent France Telecom, will share network gear in order to save on operating costs, sources told Reuters. The savings is expected to add up to 650 million euros (about $939 million) by 2015 with the shared hardware located in Poland, Austria, and Romania. While neither of the two providers have officially commented on this agreement, they are expected to do so at a joint press conference in London on Monday.
Unnamed sources said the project, dubbed Victory internally, will also include purchasing new network equipment and sharing the phone mix. How much money would be saved from this joint purchasing scheme isn't known.
The split in the known savings would break down to 200 million euros (nearly $289 million) of operating costs and 450 million euros (close to $650 million) between the deal's start and 2015.
