Vodafone negotiates with Telefónica and Orange to create a common front: a RANco

Vodafone España, under its new ownership by Zegona, is reportedly in advanced discussions with Orange and Telefónica to establish a joint mobile network infrastructure company, termed a "RANco." This strategic move mirrors the successful "fibercos" model previously implemented in Spain, aiming to consolidate network assets and drive efficiencies. The primary motivation is to address the current asymmetry in network costs and customer bases among the three major Spanish mobile operators, with Vodafone's network being comparatively less efficient due to higher fixed costs relative to its subscriber numbers. The proposed RANco would function as a wholesale entity, sharing mobile network infrastructure among its owner-operators. This consolidation is expected to yield significant cost reductions, particularly in areas like tower leasing, where Vodafone España currently pays a premium. By sharing these expenses, the operators can optimize their operational expenditures, potentially leading to improved service quality and enhanced profitability without engaging in direct merger or acquisition activities, which are often subject to complex regulatory scrutiny. This initiative highlights a broader trend in the European telecommunications sector towards infrastructure sharing as a means to improve competitiveness and accelerate digital transformation. The success of the RANco could set a precedent for similar collaborations across the continent, fostering greater European digital sovereignty by strengthening domestic players against global competition. The formation of such entities aims to reduce reliance on external providers and create more resilient, cost-effective digital infrastructures.