The agreement reached after two years of negotiations conducted in utmost secrecy will not only result in significant cost savings but also make them stronger in their competition with RCS&RDS and put pressure on the rivals that do not have fixed-mobile service packages – Vodafone and UPC.
“The project negotiated under the code name ‘Apolodor’ has been completed. The two network sharing agreements were signed in early December. Telekom has access to Orange’s 4G network via a national roaming contract and Orange will be able provide landline services via Telekom’s infrastructure,” several communications industry sources told ZF.
ZF first reported about these talks in February 2015.
Orange’s 4G network covers 70% of the total population of Romania, about double as much as Telekom’s, which had been lagging behind on the segment. On the other hand, Telekom’s fiber optics network covers 1.3 million households, while Orange’s infrastructure lacks the last mile that goes into apartment buildings or houses. The agreement gives the two parties access to each other’s vital infrastructure in the competition for customers, while enabling them to achieve significant cost savings.
As a result of the two agreements, the Telekom’s mobile phone customers will have access to Orange’s 4G network, while the subsidiary of the French telecom giant will be able to offer customers full fixed-mobile service packages, including IPTV via T’s landline network.
“The negotiations were really long and thorough. The contracts stipulate what each party should do in almost every situation that may arise,” the sources told ZF.
“Orange will pay about EUR5 per month to Telekom for each customer it will provide services to via the fixed infrastructure, plus installation fees. Telekom will pay by the amount of 4G traffic of its customers,” the sources added.
Orange and Telekom did not return ZF’s calls for comment by press time.
(English version by Loredana Fratila-Cristescu)