- Vodafone, Virgin Media O2 extend network-sharing
- Merger with Three UK under review
- Agreement aims to improve competition, connectivity
Vodafone and Virgin Media O2 have agreed to prolong their existing mobile network-sharing arrangement, which will be extended further if Vodafone’s proposed merger with Three UK is approved.
The Competition and Markets Authority is now considering a final ruling on Vodafone and Three’s proposed merger.
Vodafone and Virgin Media O2’s new long-term agreement calls for the bigger Vodafone-Three business to sell spectrum to Virgin Media O2, which the firms claim will boost mobile connectivity, choice, and competition.
This could assist address the regulator’s worries about the proposed merger, which will reduce the number of mobile networks in the UK from four to three.
The corporations say this will assist consumers and businesses nationwide by increasing choice, quality, and network coverage.
Concerns about the Vodafone-Three merger include the possibility of reduced competition due to the reduction in the number of major network carriers.
Ahmed Essam, CEO of Vodafone’s European markets, stated: “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 such as more choice, better quality, and greater coverage across the country.”
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He added: “The proposed merger, along with this agreement, will boost competition by establishing a strong third player in the UK mobile market and improve the balance of spectrum holdings, levelling the playing field between the UK’s mobile operators.”
Lutz Schuler, CEO of Virgin Media O2, stated: “We are extending and strengthening elements of our existing network-sharing arrangement while also ensuring a robust, balanced, and functional structure in place for the long term should Vodafone and Three’s proposed merger be approved.”
‘We think that this revised agreement addresses the issues we raised and the CMA described in its earlier decision, and we will now continue to engage with the regulator in this spirit.’
Vodafone shares rose 0.17 per cent, or 0.12p, to 69.08p on Wednesday, after falling more than 7% in the previous year.
