- Virgin Media O2 and Vodafone UK agreed a spectrum transfer deal worth £343 million, following the completion of the merger between Vodafone UK and Three UK
- Through the deal, Virgin Media O2 is set to acquire 78.8 MHz of spectrum, bringing the operator’s total spectrum holding to approximately 30% of UK mobile spectrum
- The deal, part of a wider network sharing agreement struck in 2024, will improve the balance in spectrum holdings across the UK’s three mobile operators, enhancing competition, coverage, and choice for millions of consumers and businesses
30 June 2025: Virgin Media O2 has today announced the details of its spectrum transfer agreement with Vodafone UK that will see Virgin Media O2 acquire 78.8 MHz of spectrum for an investment of £343 million, materially enhancing the company’s network position and helping to improve the connectivity experience of consumers and businesses across the country.
The deal, which follows the completion of the merger between Vodafone UK and Three UK, and is subject to Ofcom approval, will bring Virgin Media O2’s total mobile spectrum share to approximately 30%, ensuring the UK has three scaled mobile network operators with a greater balance in terms of spectrum holdings.
The transfer is part of a wider deal struck between Virgin Media O2 and Vodafone UK in July 2024 where the parties agreed to extend and enhance their existing mobile network sharing arrangement for more than a decade, and, following the completion of their merger VodafoneThree will now participate in that network sharing agreement.
Virgin Media O2’s spectrum acquisition, incremental to its existing investment of more than £2 billion in its networks and services, will bolster the quality of its mobile coverage across the country and will deliver improved services for its customers. Businesses will also benefit, including the MVNOs who make use of Virgin Media O2’s mobile network via wholesale partnerships to deliver their own mobile services to millions of people across the country.
The transfer of spectrum reduces the previous imbalances in spectrum between mobile network operators in the UK, enhancing competition and allowing Virgin Media O2 to provide increased capacity, speeds and greater coverage for its customers.
The spectrum will be partially funded by the minority stake sale in Cornerstone in 2024, with spectrum payments extending beyond 2025 and deployment occurring over the medium term, starting this year.
Lutz Schüler, CEO of Virgin Media O2 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.”
Notes to Editors
Virgin Media O2 will acquire the following spectrum bands from Vodafone UK:
- 20 MHz of 1400 MHz Supplemental Downlink
- 18.8 MHz of 2100 MHz Frequency Division Duplex
- 20 MHz of 2600 MHz Time Division Duplex
- 20 MHz of 3400 MHz Time Division Duplex
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