Virgin Media O2 has announced its acquisition of spectrum from VodafoneThree, which aims to enhance mobile coverage and data speeds for customers across the UK. This £343 million agreement enables Virgin Media O2 to gain ownership of 78.8 MHz of spectrum, bringing its total share to approximately 30 percent.
The additional spectrum is expected to address connectivity issues that many customers have experienced with inadequate coverage and slow data speeds. The timing of this deal follows closely behind the merger of Vodafone and Three UK, which has resulted in the creation of a new entity, termed VodafoneThree.
Before the deal can be finalized, it needs approval from the telecoms regulator, Ofcom. Industry experts believe that this acquisition will help establish a more competitive mobile landscape, with three well-equipped operators having more balanced spectrum holdings.
This acquisition is part of a larger strategy that was developed between Virgin Media O2 and Vodafone in July 2024, extending their network-sharing partnership. With the inclusion of VodafoneThree, this partnership will enable smoother collaboration as mobile operators strengthen their service offerings.
The investment in spectrum is an addition to the existing £2 billion that Virgin Media O2 has committed to improving networks and services. While immediate changes may not be apparent, customers can expect gradual enhancements in network quality, reliability, and coverage over the coming years.
Beyond benefitting VodafoneThree customers, smaller mobile providers that utilize Virgin Media O2’s infrastructure, through wholesale agreements, will also see significant advantages. Funding for this purchase will be partially sourced from Virgin Media O2’s earlier sale of its minority stake in Cornerstone, with payments structured to extend beyond 2025.
Lutz Schüler, CEO of Virgin Media O2, emphasized that this acquisition is pivotal for bolstering coverage and improving the quality of their network. With Ofcom’s approval anticipated, market participants are closely watching how this deal will shape competition in the UK mobile sector.