Virgin Media O2 is spending £343 million to buy of 78.8 MHz of spectrum from Vodafone UK.
Virgin Media O2 says the spectrum acquisition is extra to the £2 billion-plus it has already invested in its networks and services.
The purchase will be partially funded by the operator’s sale of a minority stake in Cornerstone, the mobile infrastructure joint venture, completed in 2024. Payment for the spectrum will be spread beyond 2025, with rollout of the new capacity beginning this year and continuing over the medium term.
The network expects the additional spectrum to support improved mobile coverage, increased capacity and faster speeds across its footprint. Wholesale partners using Virgin Media O2’s infrastructure – including numerous MVNOs – are also set to benefit from the network enhancements.
The move, announced today, follows the completion of the merger between Vodafone UK and Three UK, and is subject to regulatory approval from Ofcom.
The spectrum transfer will improve Virgin Media O2’s network performance and capacity and boost Virgin Media O2’s total spectrum share to around 30 per cent.
The deal is part of a broader agreement between Virgin Media O2 and Vodafone UK reached in July 2024. This includes a commitment to extend and enhance their existing mobile network sharing partnership for more than a decade. Under the new arrangement, the merged Vodafone-Three entity will also join this network sharing agreement, further integrating infrastructure across the UK mobile landscape.
Virgin Media O2 CEO Lutz Schüler said:
“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. We’re committed to giving our customers a reliable mobile experience across the country and this increase in spectrum will help us deliver on that.”
