Virgin Media O2 (VMO2) has signed a new long-term network sharing agreement with Vodafone UK, extending the current agreement and enhancing an existing partnership for over 10 years. This partnership is expected to bolster mobile coverage across the United Kingdom while delivering improved services for over 50 million customers, Virgin Media O2 said in a joint statement on Wednesday.
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Details of the Agreement
The agreement, independent of the potential merger between Vodafone UK and Three UK, includes provisions for Virgin Media O2 to acquire spectrum from MergeCo, pending regulatory approval. MergeCo plans to invest GBP 11 billion in its network over the next decade, complementing Virgin Media O2's ongoing GBP 2 billion annual investment in networks and services.
Impact on Consumers and Businesses
"This new agreement with Vodafone ensures that quality mobile network choice, performance, coverage, and competition are enhanced to the benefit of millions of consumers, businesses, and our mobile operator partners across the country," Virgin Media O2 said.
"We are extending and bolstering elements of our existing network sharing arrangement, while also ensuring there is a robust, balanced, and functional structure in place for the long term should Vodafone and Three’s proposed merger gain consent. We believe that this new agreement addresses the issues we have voiced and the CMA outlined in its initial decision, and we will continue our engagement with the regulator in this spirit," VMO2 added.
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Spectrum and Benefits
The agreement includes plans for Virgin Media O2 to purchase spectrum at market value from MergeCo, increasing their current holdings, the official release said. The benefits resulting from the agreement, including more choice, better quality, and greater coverage, extend to both retail and wholesale MVNO customers, the joint statement said.
