One Euro Alliance Is Born, Another In Trouble
By Carlo Longino, Thu Oct 02 18:45:00 GMT 2003

O2 yesterday announced it was forming an alliance with a number of smaller European carriers, while a spat between T-Mobile and Orange threatens the alliance they formed earlier this year.

Both alliances were set up to compete with Vodafone's pan-European offerings, and aim to ease roaming, and share the costs of development of new services.

Although the O2 alliance stretches across 9 countries from Spain to Hungary and Norway to Italy, covering 40 million users,Eric made the point that O2 has aligned with second-tier operators, but frankly, that's about all that was left as non-Vodafone operators look to beef up their international ties.

But as this alliance was announced, the group of T-Mobile, Orange, Telefonica Moviles and Telecom Italia Mobile looks like it's in trouble. T-Mobile and Orange have UK networks, and are arguing over who gets the revenue when a TIM or Telefonica user roams to that country.