New agreement provides Vodafone and Virgin Media O2 with access to Cellnex’s UK towers
Cellnex UK, Vodafone and Virgin Media O2 have reached a new long-term agreement under which Cellnex UK will provide the two mobile operators with tower infrastructure and associated services.
In a release, Cellnex UK noted that this new agreement strengthens and grows the existing relationship providing certainty for all involved parties.
“The new agreement, forged through great collaboration between our organizations, will enable the efficient sharing of our infrastructure today and the flexibility to support the growth of our customers’ networks in the future. Cellnex will provide related services and share our capabilities, thereby becoming a valuable partner to help Vodafone and Virgin Media O2 achieve their objectives,” said Cellnex UK CEO Gianluca Landonlina.
This new agreement ensures that Vodafone and Virgin Media O2 have access to Cellnex’s tower infrastructure across the U.K. and facilitates Vodafone and Virgin Media O2’s network sharing under their separate network sharing agreement.
Vodafone UK and Virgin Media O2 recently agreed to extend and enhance their existing mobile network sharing agreement in the U.K. with the aim of bolstering mobile coverage and offering improved services for customers.
The telcos said that many elements of the new agreement expand on the existing arrangement between Vodafone UK and Virgin Media O2 and are independent of the outcome of the proposed merger between Vodafone UK and Three UK. However, subject to completion of the merger, the operators have agreed that Virgin Media O2 will acquire spectrum from the newly created entity, establishing three scaled mobile network operators each with better alignment of spectrum holding.
Through a combination of the merged entity’s commitment to invest £11 billion ($14 billion) in its network over the next decade and Virgin Media O2’s £2 billion annual investment in its networks and services, the agreement will ensure quality mobile connectivity and a better competition, the pair said.
The new agreement will ensure that the virtual operators will have access to a choice of three scaled wholesale competitors, they added.
The telcos noted that the new agreement includes plans for Virgin Media O2 to purchase spectrum at market value from the merged entity, increasing their current holding, adding that the agreement reduces the current imbalances in spectrum holding between the U.K.’s mobile network operators.