Telefonica unit Vivo and TIM Brasil opened discussions on sharing infrastructure related to delivery of 2G and 4G services, as both operators eye a cut in operating costs.

In an announcement, Telecom Italia’s Brazil subsidiary said the two operators would discuss sharing 2G assets in a “grid model” alongside agreements related to infrastructure providing 4G over the 700MHz band in urban areas with fewer than 30,000 inhabitants.

The companies noted after the initial phase, the model could then be extended to larger cities and to incorporate services using other frequencies and technologies.

In addition to the savings from the above network sharing projects, the two operators will discuss other ways they could work together to cut overheads.

The statement added the initiatives were aligned with meeting sustainability goals, energy saving and optimising their use of public spaces. Both companies said they would preserve their autonomy over commercial and customer management functions.