Vodafone and Virgin Media O2 announce new network-sharing deal

Vodafone and Virgin Media O2 have agreed to extend their existing mobile network-sharing agreement, and will extend it further should Vodafone’s proposed merger with Three UK go ahead.

A final decision on the proposed merger between Vodafone and Three is currently being considered by the Competition and Markets Authority (CMA).

Vodafone and Virgin Media O2 said the core of the deal was that they had agreed to extend their existing network-sharing arrangement of more than a decade, saying it helped bolster mobile coverage for customers across the country.

The companies argue this would benefit both consumers and businesses across the country by enhancing choice, quality and network coverage.

Concerns raised around the Vodafone-Three merger include fears that it could reduce competition by cutting the number of major network operators in the UK.

“These benefits extend to both retail and wholesale mobile virtual network operators (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.”

“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.”