3 July 2024
VODAFONE
AND VIRGIN MEDIA O2 ANNOUNCE
NEW,
LONG-TERM NETWORK SHARING AGREEMENT
|
· New network sharing agreement ('the Agreement') significantly
extends the current agreement between Vodafone UK Limited
('Vodafone UK') and VMED O2 UK Limited ('Virgin Media O2') for more
than a decade;
· Subject to the approval of the merger between Vodafone UK and
Three UK ('MergeCo') by the UK's Competition and Markets Authority,
the Agreement provides a stable basis for MergeCo's enlarged
network to participate in the network sharing agreement and Virgin
Media O2 will acquire spectrum from the MergeCo;
·
The Agreement and formation of MergeCo will
transform the experience for tens of millions of customers across
the UK and (subject to CMA approval) will rebalance the mobile
market by creating a third scaled network operator;
· The Agreement will extend benefits from MergeCo's committed
£11 billion network investment plan to customers of Virgin Media O2
and to the mobile virtual network operators ('MVNO') with whom they
have wholesale partnerships; and
·
The Agreement and formation of MergeCo will
significantly enhance competition in the retail and wholesale
mobile markets.
Vodafone UK and Virgin Media O2 have
agreed to extend and enhance their existing mobile network sharing
agreement for more than a decade, bolstering quality mobile
coverage across the country and delivering improved services for
customers.
Many elements of the Agreement
expand on the existing arrangement between Vodafone UK and Virgin
Media O2 and are independent of the Vodafone UK and Three UK merger
outcome. However, subject to completion of the merger, the
operators have agreed that Virgin Media O2 will acquire spectrum
from the newly created MergeCo, establishing three scaled mobile
network operators each with better alignment of spectrum
holding.
Through a combination of MergeCo's
commitment to invest £11 billion in its network over the next
decade (subject to CMA approval) and Virgin Media O2's £2 billion
annual investment in its networks and services, the Agreement will
ensure quality mobile connectivity, choice and competition is
enhanced. This will not only benefit the companies' respective
customers but also businesses, which includes MVNOs who make use of
networks via wholesale partnerships to deliver their own mobile
services to millions of people across the country. The Agreement
will ensure these virtual operators have access to a choice of
three high-quality, scaled wholesale competitors, further
supporting an already thriving MVNO segment in the UK.
Ahmed Essam, CEO, European Markets, Vodafone
said: "With this agreement and our
merger with Three, we will transform the mobile experience for over
50 million customers in the UK for the long-term, providing
significant network improvements including more choice, better
quality and greater coverage across the country. These benefits
extend to both retail and wholesale MVNO customers. 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, levelling the playing
field between the UK's mobile operators."
Lutz Schüler, CEO of Virgin Media O2 said:
"This new agreement with Vodafone ensures
that quality mobile network choice, performance, coverage and
competition is enhanced to the benefit of millions of consumers,
businesses and our mobile operator partners across the
country. 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 will now continue our
engagement with the regulator in this spirit."
The Agreement includes plans for
Virgin Media O2 to purchase spectrum at market value from MergeCo,
increasing their current holding. The Agreement reduces the current
imbalances in spectrum holding between the UK's mobile network
operators, which will enhance competition in the mobile market
allowing MergeCo and Virgin Media O2 to provide increased capacity,
speeds and greater coverage for their customers.
- ends
-
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.
About Vodafone Group
Vodafone is a leading European and
African telecoms company. We provide mobile and fixed services to
over 330 million customers in 15 countries (excludes Italy which is
held as a discontinued operation under Vodafone Group), partner
with mobile networks in 45 more and have one of the world's largest
IoT platforms. In Africa, our financial technology businesses serve
almost 79 million customers across seven countries - managing more
transactions than any other provider.
Our purpose is to connect for a
better future by using technology to improve lives, businesses and
help progress inclusive sustainable societies. We are committed to
reducing our environmental impact to reach net zero emissions by
2040.
For more information, please
visit
www.vodafone.com, follow us on X at
@VodafoneGroup or connect with us on LinkedIn at
www.linkedin.com/company/vodafone.
About Virgin Media O2
Virgin Media O2 launched on 1 June
2021 following the merger of Virgin Media and O2 (Telefonica
UK)
The company has more than 45 million
UK connections across its award-winning broadband, mobile, TV and
home phone services. Its fixed network covers more than half of the
country (17.2m homes serviceable) alongside a mobile network that
covers 99% of the nation's population.
The company is on track to bring 5G
to all populated areas by the end 2030, and has already launched 5G
Standalone in 14 UK cities. It is also upgrading its fixed network
to full fibre to the premises with completion in 2028. Alongside a
separate joint venture called nexfibre, which is expanding fibre to
new areas of the country, Virgin Media O2's total fixed footprint
will reach around 80% of the UK once both build and upgrade work is
completed.
Through Virgin Media O2 Business,
the company plays a leading role supporting entrepreneurs,
enterprises and the public sector with their digital transformation
through a range of connectivity, security, cloud and tailor-made
services. It is also the network of choice for mobile virtual
network operators giffgaff and Sky Mobile, as well as managing a
50:50 joint venture with Tesco for Tesco Mobile.
The company is committed to using
the power of connectivity to drive change for people and the
planet, taking action to close the digital divide and building an
inclusive, resilient, and low carbon economy. The business has set
an ambitious commitment to achieve net zero carbon across its
operations, products and supply chain by the end of
2040.
Virgin Media O2 is a 50:50 joint
venture between Liberty Global and Telefónica SA and is registered
in England and Wales. Registration number: 12580944. Griffin House,
161 Hammersmith Road, London, United Kingdom, W6
8BS.