Vodafone signs landmark deal with biggest UK rival

VODAFONE’S blockbuster £15 billion merger with Three edged a crucial step closer to completion today after the telecoms giant signed a fresh network deal with its biggest British rival, Virgin Media O2.

- Simon Hunt

The pact, which is set to last for more than a decade, extends the two firms’ existing network sharing arrangement while also allowing VMO2 to acquire more network spectrum in the event that the merger goes ahead.

That would ensure that Vodafone’s combination with Three would not dominate the UK mobile network infrastructure, a move that it is hoped will placate competition regulators’ concerns over the size of the merged entity, ahead of a final decision on whether to approve the deal scheduled for later this year.

Ahmed Essam, Europe CEO at Vodafone, told the Standard: “I see this as a significant milestone for us as we work through the merger process.

“This agreement materially enhances VMO2’s network position and we think this improves the balance of spectrum allocation between all operators, incentivising all the players in the market to compete and invest.”