Link Securities | The Spanish telecom, through its subsidiary Virgin Media O2, and Vodafone have reached an agreement in the UK to strengthen their mobile network sharing agreement for the next ten years, Expansión newspaper reported yesterday. The deal incorporates the purchase of assets from Vodafone to facilitate a merger with Hutchison subsidiary Three in the country.
Perhaps the most novel aspect of the deal is that VMO2, in which Telefónica has a 50% stake, will acquire spectrum from the company created by the merger of Vodafone UK and Three, allowing for three large network operators with a more balanced spectrum. The acquisition, which is conditional on the merger being authorised, will be made at market prices, although no details have been given on the amount or possible timing.
