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It is expected that around 5,000 duplicate masts will be removed in the next two years, saving the companies £2 billion in maintenance, rental and transmission costs over the next 10 years.

The newly merged network will be managed by a joint-venture company called Mobile Broadband Network Limited, on an agreement that will run until the end of 2031.

"3G is a transforming technology, but this will be the first time

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that a 3G access network in this country is able to achieve both the reach and the capacity to meet the needs of the future," says Jim Hyde, chief executive of T-Mobile UK.

Although the companies will be sharing their 3G networks, T-Mobile's existing 2G network will not be made available to 3 and each company will continue to operate separate "core" networks.

"This market-leading initiative will accelerate the adoption of new services in a timescale each of us could not have achieved on our own," says Kevin Russell, chief executive officer of 3 UK.

"It also enables us to cost effectively meet customer demand for faster speeds, wider coverage and greater capacity that is starting to arise as mobile devices become the most cost-effective and convenient route to access the internet."

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