O2 and Vodafone extend UK network sharing deal to include 5G

LONDON (Reuters) - Telefonica's <TEF.MC> O2 and Vodafone <VOD.L> have agreed to extend their network partnership in Britain to include 5G to accelerate the deployment of the faster mobile service at a lower cost for both operators.

The two groups - the second and third biggest players in the competitive market behind BT's EE <BT.L> - said they would also upgrade their transmission networks with higher capacity fibre cables.

They have agreed non-binding heads of terms about the agreement which remain subject to regulatory approval. They expect to conclude the steps during 2019.

(Reporting by Kate Holton, Editing by Paul Sandle)