The new network, which will trade as Vodafone, is set to be a major threat to Telstra as both carriers and vendors head to Barcelona for the Mobile World Congress which will take place from 16 to 19 February in an effort to identify the hot new products and services for 2009.

The deal which is a joint venture in name is a big win for Vodafone who have not only taken out a competitor but have significantly expanded their 3G customer base only weeks out from the roll out of a new netweek.

It was only a few months ago that Vodafone Australia's acquired the Crazy John's retail network, a move that the company's CEO Russell Hewitt, has said has resulted in an increase of around 110,000 new customers in the last quarter.

Vodafone's customer base now stands at 4.2 million, up around 110,000 on the company's half yearly results reported last November. The 50/50 joint venture could see this expanded significantly in coming months.

The two moves by Vodafone could well see the  Company become the #2 telco in Australia with several analysts already tipping that the deal wil hurt Optus more than Telstra.