Vodafone and Orange are close to signing a deal that will see the two companies share the costs of technology, engineering and maintenance at their network base stations in the UK, reports The Observer.

The move, which could be announced shortly, is expected to save Vodafone £1bn a year at a time when revenue in some European countries is being hit by competitive pressure. The agreement is expected to be viewed positively by the City and should be seen as a feather in the cap of new chief executive Vittorio Collao, who took over from Arun Sarin.

To read this report in full in The Observer, see www.guardian.co.uk/business/2009/jan/04/vodafone-orange-cost-sharing-deal.