Virgin Media O2 Boosts Mobile Network with £343M Vodafone UK Spectrum Deal
Virgin Media O2 has announced a significant move to enhance its mobile network. The company, a 50:50 joint venture between Telefónica and Liberty Global, led by CEO Lutz Schüler, has agreed to acquire 78.8 MHz of spectrum from Vodafone UK for £343 million (€400m). This deal, subject to Ofcom approval, will boost Virgin Media O2's mobile spectrum share to approximately 30 per cent.
The acquisition, incremental to Virgin Media O2's existing investment of over £2 billion, is set to bolster its mobile coverage across the UK. This will not only benefit consumers but also businesses, including Mobile Virtual Network Operators (MVNOs) like T-Mobile, Mint Mobile, T Mobile, and Boost Mobile. The spectrum, amounting to 78.8 MHz, will help improve network quality and expand reach.
The deployment of the spectrum will occur over the medium term, starting in 2025. Part of the funding for this acquisition will come from the minority stake sale in Cornerstone in 2024, with payments extending beyond 2025. Lutz Schüler, CEO of Virgin Media O2, expressed that this acquisition will significantly enhance the company's mobile capabilities.
With this deal, Virgin Media O2 continues its commitment to investing in and improving its networks and services. The acquisition, following the merger between Vodafone UK and Three UK, is expected to strengthen Virgin Media O2's position in the UK mobile market. Upon Ofcom approval, the company will proceed with the integration of the acquired spectrum, aiming to deliver enhanced mobile experiences for its customers.
