Vodafone Essar signs 3G network sharing agreements

Vodafone Essar, India's second largest GSM operator by subscriber numbers, has entered into 3G network sharing agreements with two competing GSM operators - Bharti Airtel and Idea Cellular Ltd – to offer services in regions where it does not hold licences nor spectrum.

The companies will now share their networks with each other through both inter- and intra-circle roaming agreements, and the agreement will permit the companies to provide services across the country. This would also help in reducing overheads of these GSM operators.

The financial details of the revenue share agreement were not disclosed.

At the time 3G spectrum auction, none of these companies received licences for all the 22 circles. Bharti Airtel has 3G licences in 13 circles, Idea Cellular across 11 circles and Vodafone in 9 circles.

Intra-circle agreements are common with telecom companies, as these help in reducing expenses and expanding reach, apart from helping them offer quality services.

Vodafone Essar and Idea Cellular had earlier entered into similar agreements for Kerala, Delhi and Kolkata circles, while Bharti Airtel has signed with Idea for Gujarat telecom service area.