The agreement stipulates that each company will deploy its own FTTH network in complementary areas, including both the horizontal segment and the vertical cabling necessary for building access, and that both companies will facilitate mutual access to and use of their respective infrastructures. Furthermore, both operators will jointly negotiate sharing agreements with any other operator that has vertical infrastructure in the territories covered by this agreement.

The deployment plan has been agreed upon by both companies, both in terms of the pace and the territories where the networks will be deployed, which will be as similar as possible to ensure reciprocity and balance in the agreement. This plan aims to reach 3 million homes in 2015 and 6 million in 2017, covering more than 50 cities and significantly expanding the FTTH footprint in Spain. The deployment pace may be adjusted by mutual agreement between both companies depending on market developments and the regulatory environment.

The coverage areas of the horizontal networks built by each company will be complementary and non-overlapping, and their technical characteristics will be compatible so that they can be connected to form a single, wider network, maximizing the efficiency of the investments made. Each company will own the network deployed in its coverage area, pooling the investments made.

Regarding vertical cabling, each company will build its own verticals in buildings where they do not yet exist, within its coverage area. Both companies will share the verticals built under this agreement and will collaborate to gain access to the vertical infrastructure of any other operator in buildings where it is already deployed. Each company is responsible for the maintenance of its network in the territory assigned in the agreement.

The connection of end customers, as well as the delivery, maintenance, and management of the final service, will be carried out by each company completely independently. Likewise, the commercial offerings of both companies will be distinct and will therefore have independently established prices, support services, and distribution channels. In this way, the agreement reached will benefit customers by ensuring a wider range of offerings, extending the reach of very broadband, and increasing market competition.

This agreement is open to the participation of other operators who wish to invest in the same deployment model.


The regulatory environment:
A fundamental element for achieving the objectives of this agreement is the possibility of sharing vertical cabling with other operators present in the coverage areas. In this regard, both Orange and Vodafone have been independently negotiating a vertical sharing agreement with Telefónica for months, without either having reached a positive outcome so far.

This agreement has been reached in the confidence that a regulatory framework for fiber will be in place in the near future that allows:
1. The full sharing of vertical cabling within buildings, as established by regulations, at a price appropriate to its actual cost.
2. Easier access to Telefónica's ducts, essential for facilitating the rapid and massive deployment of the new network.
3. The elimination of the 30 Mbps limit in the NEBA offer under economic conditions that allow competition in the retail fiber market.
4. Greater ease and speed in obtaining the necessary permits for the planned deployments, through coordinated administrative responses from city councils and residents' associations.

Success of previous agreements:
This is not the first time Vodafone and Orange have entered into an agreement regarding network deployment sharing. They signed a RAN sharing agreement in 2006, with the aim of expanding 3G mobile data coverage in rural areas (populations between 1,000 and 25,000 inhabitants). Due to its success, this agreement was extended last year to 2G technology in the same geographic area, with a goal of sharing 6,000 common sites across 52 provinces.