UK RAN share with Orange

Vodafone Group Plc
08 February 2007


          VODAFONE UK AND ORANGE UK PROPOSE RADIO ACCESS NETWORK SHARE

08 Feb 2007. London. VODAFONE UK and ORANGE UK today announce their intention to
share Radio Access Networks (RANs), delivering long-term benefits to customers.

The two companies have signed non-binding heads of terms outlining the
principles of sharing their respective RANs. The proposal allows the two
companies to:

*  Continue managing their own traffic independently

*  Retain full responsibility for the quality of service they offer their
   respective customers

*  Remain competitors in the UK mobile wholesale and retail markets

The project outlines plans for the two RANs to be combined over a number of
years and covers both existing and new build of the companies' 3G RANs. For 2G,
the heads of terms commits to exploring opportunities as technical solutions
become available.

Bernard Ghillebaert, CEO of Orange UK, said: 'This represents an important step
in the evolution of the UK mobile market. As the industry matures we must look
at new ways to serve our customers and this provides a common sense approach to
network roll out and management in the twenty-first century.'

Nick Read, CEO of Vodafone UK, adds: 'This proposal is industry leading and will
enable the two companies to remain vigorously competitive against each other and
the market, while realising the proven benefits of network sharing, notably
faster roll out of high speed mobile services in the future and the earlier
introduction of innovative products.'

Shared efficiencies and reduced duplication

Long-term shared efficiencies are likely to be realised by jointly managing and
maintaining the RANs, as well as the future roll out of RANs of both companies.
By combining the two RANs, the long-term intention is to reduce the total number
of masts needed in the future to enable customers to use their mobile devices.
The combined RANs would therefore have a smaller environmental footprint. From a
business perspective, there will be reduced capital and operating expenditure
arising from the fewer number of sites required. These efficiencies will enable
more investment in innovative products and services, benefiting customers.

Better mobile coverage for over 30 million* customers

Customers will benefit from the long-term improvements to coverage. The coverage
of both operators would eventually be combined to offer improved and
complementary coverage, particularly in rural areas. As a result customers would
be able to use their phones in more places across the UK. RAN sharing will
ensure that both companies remain committed to the faster roll out of high speed
services.

Continued competition and differentiation in the UK mobile market

Competition between the two companies will be unchanged as the core network
would remain within the control of each company, enabling each operator to
continue offering differentiated products, services and prices within the UK
market. Some specific areas of coverage, such as corporate customer in-building
coverage schemes, would remain outside the share and each company will remain
free to add additional coverage for its sole use over and above the combined
RAN.

Orange UK and Vodafone UK are currently in discussions regarding the appropriate
vehicle within which to manage, maintain and build the radio access network for
both companies. The structure and terms of any agreement are expected to be
determined in the coming months. Vodafone UK's Chief Technical Officer, Paul
Wybrow, and, Orange UK's VP of Business Support, Steve Aumayer, are to lead this
process.
 
* combined total of Vodafone UK and Orange UK customers

                                    - ends -                                    


NOTES TO EDITORS

Principles of RAN sharing: The form of network sharing proposed by the parties
relates only to the radio access part of the network (the RAN).  The RAN
includes mast, antenna, sites, site support cabinet and power supply as well as
antennae, combiners and transmission links, Nodes B (3G), BTS (2G) and the radio
network controllers which are linked to the core network.  The latest
developments in technology mean that base stations can now be configured to
transmit more than one operator's signal, which leaves each operator free to
determine its own service offering using its own spectrum. 
 

About Orange UK

As at the end of December 2006, Orange UK had over 17 million customers (15.3
million active mobile customers and over 2 million internet customers).
Orange is a key brand of the France Telecom Group, providing mobile, broadband,
fixed, business and entertainment services across Europe. It is one of the
world's leading telecommunications operators with more than 153 million
customers on five continents.


About Vodafone UK

Vodafone UK has 16.9 million customers and is part of the world's largest mobile
community offering a wide range of voice and data communications. The company is
committed to providing mobile solutions that allow both consumer and business
customers to make the most of now. For more information, please visit
www.vodafone.co.uk.


For further information:

Vodafone Group

Investor Relations                             Media Relations
Tel: [phone]                       Tel: [phone]

Orange UK

Stuart Jackson / Scott Jacobson, Orange UK Media Relations, [phone]

 



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