Vodafone UK and Virgin Media O2 have struck a new, long-term network sharing agreement that could significantly reshape the UK mobile market.
The deal, which extends their existing partnership for more than a decade, aims to bolster mobile coverage and improve services for customers across the country.
The agreement hinges on the approval of Vodafone UK’s merger with Three UK by the Competition and Markets Authority (CMA). If given the green light, the newly formed entity has committed to an £11 billion network investment plan over the next decade. This massive injection of capital is expected to drive revenue growth and potentially boost profitability.
Virgin Media O2 has pledged £2 billion annually for its networks and services. This dual investment strategy is poised to enhance the quality of mobile connectivity, potentially leading to increased customer satisfaction and reduced churn rates – key factors in maintaining and growing revenue streams.
“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,” said Ahmed Essam, CEO, European Markets, Vodafone.
“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.”
