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Last modified:
  30 Mar 2009
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Are O2 and Vodafone really arch rivals?

by Tony Dennis

Unfortunate juxta positions of our time. The Sunday Times interview with Telefonica's Cesar Alierta and a sub links to Vodafone and O2 to pool networks.

It's unfortunate because the whole premise of the article is the Telefonica chairman's confession that he's vying with Vodafone for world domination. Telefonica owns O2, of course.

Meanwhile The Guardian carries a news story that "Vodafone and O2 are to pool their networks in a bid to cut costs while continuing to operate under their own brands."

Hardly the action of arch enemies is it? So it's unlucky that a sub has put a link to the timesonline story reporting The Guardian story at the bottom of the Alierta piece.

It's particularly strange since Vodafone and Orange are supposed to be merging their respective networks. The Grauniad even reckons that Orange would like to join T-Mobile and 3’s sharing venture.

The best part of Alierta interview are the accompanying figures. I'm used to writing that "Vodafone is the largest mobile network operator by revenue."

But how do you calculate pure mobile network revenues any more. It could start to get fun because the article says that by March 2008, Vodafone had earnt £35.5 billion while by December 2008, Telefonica had earnt £54.5 billion.

In terms of networks, users and market capitalisation the two are almost evenly matched with Vodafone having 27, 289 million and £63 billion while Telefonica has 25, 259 million and £66 billion.

Where's there's a massive difference is in employees. Vodafone apparently has a mere 72,000 workers while Telefonica has 0.25 million. Whoops.