Tele2 A has signed an agreement with Bite Group to create a network sharing joint venture in Latvia and Lithuania. The partnership includes sharing of infrastructure in current networks, spectrum sharing as well as future build-out of 5G.
The two operators’ current radio and transmission networks will be merged, forming a joint shared network in each country. The aim is to improve network capacity and coverage for Latvian and Lithuanian customers, while reducing each party’s operational costs and energy consumption. The partnership also aims to roll out joint 5G networks faster and at a significantly lower cost than Tele2 and Bite would have been able to do on a stand-alone basis.
The board and management of the joint venture is jointly appointed by the two owners, and managed by a board with representatives from each company.
Each party obtains a 50 percent ownership in the joint venture in both Latvia and Lithuania. The joint network will be built out gradually starting 2021, with the full network targeted to be established by December 31, 2023. Per this date, Tele2 and Bite will share all of their radio network, only excluding customer specific solutions. The parties will continue to act as competitors in the Lithuanian and Latvian markets in all other aspects.
Anders Nilsson, President and CEO, Tele2
Network sharing has proven to be very successful for Tele2. In Sweden we share all of our mobile network infrastructure, which has not only made it possible for us to build world-class networks for our customers at lower cost, but also made us the most energy efficient operator in the country.
Nikita Sergienko, CEO, Bite Group
The major goal of the partnership is to optimize existing radio network and build 5G infrastructure in Lithuania and Latvia faster, less costly and with better coverage than on an individual basis.
