Vodafone is in advanced discussions with rival Hutchison Whampoa about merging their Irish telecoms infrastructure in the latest attempt by mobile operators to cut costs and improve coverage in the face of difficult business conditions.
The negotiations between Vodafone and Li Ka-shing ‘s Hutchison Whampoa, the Hong Kong-based conglomerate that operates the Three mobile brand in Ireland, to create a shared grid have reached agreement although not formally signed.
The pair will create an equal joint venture structure that will own the telecoms equipment, but they will maintain independent spectrum holdings and run competing retail services. Savings for each business could exceed £200m over a five-year period, according to one person with knowledge of the talks.