Vodafone and O2 have agreed on a deal which will see the two mobile operators merging their mobile networks, in order to improve mobile phone reception across the country, and, more importantly, improve the availability and quality of mobile broadband services.

Matthew Key, chief executive of O2 owners Telefonica Europe said: “This goes some way to ‘future proofing’ the network,” adding that “the current economic situation was a catalyst.”

The merging of the networks will see the operators saving hundreds of millions of pounds over the next few years, and could, in theory, lead to the eventual rollout of mobile broadband services comparable to fixed-line connections in terms of speed and reliability, in accordance with Lord Carter’s Digital Britain proposals.

This follows in the footsteps of a deal done in December 2007 between 3 and T-Mobile. The two operators share HSDPA networks and are starting to decommission masts, with T-Mobile already noticing savings, costs, freeing up money that can be invested.

In Spain, a joint venture between Vodafone and Orange saw the two providers able to bring much faster services to rural areas, by reducing the number of base stations needed, thereby reducing the cost of running and maintenance.