Mobile operators Tele2 and Bite have agreed to create a network sharing joint venture in Latvia and Lithuania. The partnership includes sharing of infrastructure for current networks, spectrum sharing and the future build-out of 5G.
The joint venture will have a mission to build, own and operate mobile networks in Latvia and Lithuania. The partnership includes sharing of active and passive network infrastructure and transmission for 2G, 3G, 4G as well as the upcoming 5G roll-out.
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, Tele2 said in a statement. 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.
Each party will have 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 the end of 2023. Per this date, Tele2 and Bite will share all of their radio network, only excluding customer-specific elements. The parties will continue to act as competitors in the Lithuanian and Latvian markets in all other aspects.