VMO2 secures major spectrum boost in £343m Vodafone deal

June 30, 2025 07:57 AM

Virgin Media O2 (VMO2) has secured a £343 million deal with Vodafone UK to acquire 78.8 MHz of mobile spectrum, significantly boosting its nationwide mobile network and enhancing connectivity for consumers and businesses across the country.

The spectrum transfer, which follows the completion of the Vodafone UK and Three UK merger, is subject to Ofcom approval and will bring Virgin Media O2’s total mobile spectrum holding to around 30%.

The move is expected to strengthen competition across the UK telecoms sector by creating greater balance in spectrum holdings among the three major mobile operators.

“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,” said Lutz Schüler, CEO of Virgin Media O2.

“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.”

The deal forms part of a broader agreement reached in July 2024, in which Virgin Media O2 and Vodafone UK agreed to extend and enhance their existing mobile network sharing arrangement.

Once the Vodafone-Three merger is complete, the newly formed VodafoneThree entity will also participate in the network sharing agreement, aiming to drive efficiencies and accelerate nationwide 5G deployment.

The newly acquired spectrum includes:

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

Virgin Media O2’s spectrum purchase complements its ongoing network investment of over £2 billion.

The move is set to deliver improved capacity, higher speeds, and expanded coverage across its mobile network.

The spectrum will be gradually deployed from this year and is partially funded through the company’s minority stake sale in Cornerstone, its mobile infrastructure joint venture.

The deal is also expected to benefit mobile virtual network operators (MVNOs) that rely on Virgin Media O2’s infrastructure to deliver services to millions of UK customers, strengthening overall service availability and performance.