Vodafone UK and Virgin Media O2 Extend Network Sharing Agreement, Enhancing UK Mobile Market

Vodafone UK and Virgin Media O2 Extend Network Sharing Agreement, Enhancing UK Mobile Market

(IN BRIEF) Vodafone UK and Virgin Media O2 have extended and enhanced their mobile network sharing agreement for over a decade, aimed at improving mobile coverage and service quality across the UK. The agreement, contingent on regulatory approval for Vodafone UK’s merger with Three UK (MergeCo), includes Virgin Media O2 acquiring spectrum from MergeCo to balance spectrum holdings among the three major operators. With MergeCo’s planned £11 billion investment in network infrastructure (subject to CMA approval) and Virgin Media O2’s ongoing £2 billion annual investment, the partnership aims to enhance mobile connectivity, competition, and support for MVNOs. This strategic move is expected to significantly benefit consumers and businesses by increasing network capacity and speeds nationwide.

(PRESS RELEASE) BERKSHIRE, 4-Jul-2024 — /EuropaWire/ — Vodafone UK and Virgin Media O2 have announced a significant extension and enhancement of their mobile network sharing agreement, aimed at bolstering mobile coverage and service quality across the UK. This agreement, set to span more than a decade, is designed to deliver improved connectivity and customer experience to millions of consumers and businesses nationwide.

Key elements of the agreement include provisions independent of the proposed merger between Vodafone UK and Three UK (MergeCo). However, contingent upon merger approval, Virgin Media O2 will acquire spectrum from MergeCo, facilitating the creation of three robust mobile network operators with optimized spectrum holdings.

The collaboration leverages MergeCo’s committed £11 billion investment in network infrastructure over the next decade (pending CMA approval), combined with Virgin Media O2’s annual £2 billion investment. This initiative aims to enhance mobile connectivity, competition, and choice, benefiting not only direct customers but also mobile virtual network operators (MVNOs) operating through wholesale partnerships.

Ahmed Essam, CEO of European Markets at Vodafone, highlighted the transformative impact of the agreement and merger, promising enhanced network capabilities and broader coverage. Lutz Schüler, CEO of Virgin Media O2, emphasized the agreement’s role in improving network choice, performance, and competitive dynamics in the UK mobile market.

The agreement also includes plans for Virgin Media O2 to purchase spectrum from MergeCo at market value, addressing current imbalances and enabling increased capacity and speeds for customers. Pending regulatory approval, this strategic move is expected to further boost competition and benefit consumers across the UK.

Notes to Editors

Any reference to MergeCo is subject to CMA approval.

Subject to regulatory approval, the Agreement between Virgin Media O2 and Vodafone

increases the ability of MergeCo and Virgin Media O2 and virtual operators to compete more effectively, providing customers with more choice, better quality, and greater network coverage in all parts of the country;

materially enhances Virgin Media O2’s network position through access to more spectrum, reducing the current imbalance in spectrum holdings across the UK market;

enhances both parties’ networks across the UK, reinforcing the commitment to invest in upgrades, both at existing and new sites; and

benefits MVNOs through access to a higher capacity network across a wider grid of sites.

Media Contact:

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SOURCE: Vodafone Group