Virgin Media O2 is set to acquire spectrum from VodafoneThree, a move that promises faster speeds and improved coverage for mobile customers across the UK.
Under the £343 million agreement with VodafoneThree, Virgin Media O2 will gain ownership of 78.8 MHz of spectrum, increasing its total share to about 30 percent. That additional capacity should help ease congested cells and address areas of poor coverage or sluggish data performance.
This transfer follows the recent merger of Vodafone and Three UK into VodafoneThree and must be approved by the telecoms regulator Ofcom before completion. Industry observers say the deal will contribute to a more balanced competitive landscape by creating three mobile operators with more even spectrum holdings.
The spectrum sale is part of a wider arrangement between Virgin Media O2 and Vodafone announced in July 2024, which extended their network-sharing partnership for more than a decade. With the merger, VodafoneThree will now join that long-term collaboration.
For Virgin Media O2, the purchase complements the more than £2 billion the company is already investing in network infrastructure and services. While customers will not see instant transformation, they should notice steady improvements in capacity, reliability, and geographic coverage as the new spectrum is deployed.
Smaller operators that rely on Virgin Media O2’s infrastructure through mobile virtual network operator (MVNO) agreements will also benefit, since broader network capacity and improved coverage can ripple through to millions of additional connections supplied via wholesale arrangements.
Part of the funding for the acquisition comes from Virgin Media O2’s earlier sale of its minority stake in Cornerstone, with payments structured to continue beyond 2025. The company plans to start using the new spectrum this year, but full roll-out will occur over the “medium term,” meaning gradual upgrades over several years.
Lutz Schüler, CEO of Virgin Media O2, commented: “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.”
The timing is notable: the deal arrives while the market is still adjusting to the VodafoneThree merger, a consolidation that has reshaped the UK mobile sector. This spectrum acquisition appears intended to ensure Virgin Media O2 remains competitive in the new market structure.
All eyes are now on Ofcom, whose approval is required before spectrum can change hands. Given the potential benefits for market competition and consumer experience, analysts generally expect regulators to grant approval in due course.
See also: Opensignal: VodafoneThree speed vow masks consistency issue
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