Virgin Media O2 has announced details of its spectrum transfer agreement with Vodafone UK.
The £343 million deal for 78.8 MHz of spectrum follows the completion of the merger between Vodafone UK and Three UK.
Subject to Ofcom approval, the segment will bring Virgin Media O2’s total mobile spectrum share to approximately 30%, ensuring the UK has three scaled mobile network operators with a greater balance in terms of spectrum holdings.
The transfer is part of a wider deal struck between Virgin Media O2 and Vodafone UK in July 2024 where the parties agreed to extend and enhance their existing mobile network sharing arrangement for more than a decade, and, following the completion of their merger VodafoneThree will now participate in that network sharing agreement.
Lutz Schüler, CEO of Virgin Media O2 said the company is committed to giving our customers a reliable mobile experience across the country. “This acquisition of spectrum will not only create greater balance in holdings across the UK’s mobile networks, but for Virgin Media O2 it will allow us to boost coverage and further improve our network quality, building on the significant investment we are already making in our mobile network.”
Virgin Media O2 will acquire the following spectrum bands from Vodafone; 20 MHz of 1400 MHz Supplemental Downlink; 18.8 MHz of 2100 MHz Frequency Division Duplex; 20 MHz of 2600 MHz Time Division Duplex and 20 MHz of 3400 MHz Time Division Duplex.
The spectrum will be partially funded by the minority stake sale in infrastructure company Cornerstone in 2024, with spectrum payments extending beyond 2025 and deployment occurring over the medium term, starting this year.
