{"id":38580,"date":"2024-07-03T07:32:50","date_gmt":"2024-07-03T06:32:50","guid":{"rendered":"https:\/\/www.ispreview.co.uk\/?p=38580"},"modified":"2024-07-03T08:33:22","modified_gmt":"2024-07-03T07:33:22","slug":"vodafone-and-virgin-media-o2-sign-uk-network-sharing-agreement","status":"publish","type":"post","link":"https:\/\/www.ispreview.co.uk\/index.php\/2024\/07\/vodafone-and-virgin-media-o2-sign-uk-network-sharing-agreement.html","title":{"rendered":"Vodafone and Virgin Media O2 Sign UK Network Sharing Agreement"},"content":{"rendered":"

Mobile network operators Vodafone<\/a> and O2<\/a> (Virgin Media<\/a>) have today announced a new 10-year network sharing agreement. Crucially, the deal also includes a provision for Vodafone<\/a>’s proposed merger with Three UK<\/a> (aka – MergeCo), which will enable the merged company to “participate<\/em>” in the same network sharing deal and divest some radio spectrum to O2<\/a>.<\/p>\n

In case anybody has forgotten, O2<\/a> and Vodafone<\/a> originally established a 50:50 network sharing agreement – via Cornerstone<\/a> (CTIL) – all the way back in 2012, which has helped to support the roll-out of 4G<\/a> and 5G<\/a> mobile (mobile broadband) services. But this has already been through quite a lot of changes as the operators have moved to commercialise their mast (tower) sites.<\/p>\n

The recently proposed mega-merger between Three UK<\/a> and Vodafone (here<\/a>), which is currently going through the final phase of a tedious competition review (here<\/a>), has also thrown up a new complication for the network sharing deal, which today’s deal helps to resolve. But that merger is still very much subject to CMA approval, which today’s deal has to be mindful of.<\/p>\n

The new network sharing agreement, which will run for 10 years, thus expands on the existing deal between O2 and Vodafone – much of which is independent of the merger outcome. However, subject to completion of the merger, the operators have agreed that VMO2 will also acquire spectrum from the newly created MergeCo, establishing three scaled mobile network operators each with better alignment of spectrum holding.<\/p>\n

This also means that MergeCo\u2019s enlarged network will be able to participate in the network sharing agreement. “The Agreement will ensure [virtual network operators] have access to a choice of three high-quality, scaled wholesale competitors<\/em>,” said the announcement.<\/p>\n

Lutz Sch\u00fcler, CEO of Virgin Media<\/a> O2, said:<\/strong><\/p>\n

\u201cThis new agreement with Vodafone ensures that quality mobile network choice, performance, coverage and competition is enhanced to the benefit of millions of consumers, businesses and our mobile operator partners across the country.<\/p>\n

We are extending and bolstering elements of our existing network sharing arrangement, while also ensuring there is a robust, balanced and functional structure in place for the long-term should Vodafone and Three\u2019s proposed merger gain consent.<\/p>\n

We believe that this new agreement addresses the issues we have voiced and the CMA outlined in its initial decision, and will now continue our engagement with the regulator in this spirit.\u201d<\/p><\/blockquote>\n

Ahmed Essam, CEO of European Markets, Vodafone, said:<\/strong><\/p>\n

\u201cWith 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.<\/p>\n

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\u2019s mobile operators.\u201d<\/p><\/blockquote>\n

However, while this does resolve a couple of the key issues raised by the competition authority \/ CMA (i.e. how to resolve network sharing between the three operators and the imbalance in spectrum ownership), it still remains the case that unpicking EE<\/a> (BT<\/a>) and Three UK<\/a>’s separate network sharing agreement is yet to be resolved<\/a>.<\/p>\n

The BT<\/a> Group isn’t just concerned about the level of spectrum ownership that the combined MergeCo will hold, but also with how the impact on their network sharing deal with Three UK could give rivals access to “commercially sensitive information (CSI) relating to BT<\/a>\u2019s investment plans<\/em>” and lessen infrastructure competition, among other things. A deal will have to be done to resolve this, or the CMA may need to force a solution.<\/p>\n

At the time of writing VMO2 has declined to say precisely what spectrum they’ll get from the merger (if approved), although it’s understood to be the spectrum they want, which is compatible with their existing holdings (mid-band holdings in particular).<\/p>\n","protected":false},"excerpt":{"rendered":"

Mobile network operators Vodafone and O2 (Virgin Media) have today announced a new 10-year network sharing agreement. Crucially, the deal also includes a provision for Vodafone’s proposed merger with Three UK (aka – MergeCo), which will enable the merged company to “participate” in the same network sharing deal and divest some radio spectrum to O2.<\/p>\n","protected":false},"author":1,"featured_media":37295,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ngg_post_thumbnail":0,"footnotes":""},"categories":[1,1645],"tags":[61,406,60,32,475,96],"class_list":["post-38580","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uk_isp_news","category-key_uk_isp_industry_developments","tag-4g","tag-5g","tag-mobile-broadband","tag-o2","tag-virgin-media","tag-vodafone"],"share_on_mastodon":{"url":"https:\/\/mastodon.social\/@ispreview\/112721164513177671","error":""},"yoast_head":"\nVodafone and Virgin Media O2 Sign UK Network Sharing Agreement - ISPreview UK<\/title>\n<meta name=\"description\" content=\"Mobile network operators Vodafone and O2 (Virgin Media) have today announced a new 10-year network sharing agreement. 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