Virgin Media O2 and Vodafone have agreed to a new network-sharing deal in the UK for the next decade.
The agreement also includes plans for Virgin Media O2 to acquire spectrum from Vodafone, which could help the latter gain regulatory approval for its merger with Three.
The proposed £15 billion ($19.16bn) merger is currently under investigation by the UK's Competition and Markets Authority (CMA).
"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," said Lutz Schüler, CEO of Virgin Media O2.
"We believe that this new agreement addresses the issues we have voiced and the CMA outlined in its initial decision, and will now continue our engagement with the regulator in this spirit.”
O2 and Vodafone previously established a 50:50 network sharing agreement JV – via Cornerstone back in 2012, aimed to support the rollout of 4G and 5G network coverage.
Virgin Media O2 notes that the agreement corrects the spectrum imbalance that currently stands ahead of the proposed merger, and will enhance competition between the UK's mobile network operators.
The telco itself was formed from a merger between Virgin Media and O2 in 2021.
“The proposed merger, together with this agreement, will boost competition by establishing a strong third player in the UK mobile market and will improve the balance of spectrum holdings, leveling the playing field between the UK’s mobile operators," added Ahmed Essam, CEO, European Markets, Vodafone.
