UK has the slowest mobile networks in the G7 apart from Japan and the gap between the leaders and UK is widening annually – it also has the second lowest consistency score in Europe
Virgin Media O2 announced details of its spectrum transfer agreement with Vodafone UK. The former will acquire 78.8MHz of spectrum from the latter for £343 million. The deal follows the completion of the merger between Vodafone UK and Three UK. It is subject to approval by the telecoms regulator Ofcom.
The acquisition will bring Virgin Media O2’s total share of spectrum for mobile to about 30% of what is available, improving the balance of spectrum holding between the three remaining mobile operators (O2, EE and Vodafone Three) in the country. This, it is argued, is essential to achieve scale.
Assuming the deal goes through, most of the spectrum will go to improve 4G capacity, with 20MHz boosting 5G’s. The MVNOs Tesco Mobile, the biggest in the UK, plus Sky Mobile and Giffgaff, which is owned by O2, also run on Virgin Media’s O2 network.
According to Virgin Media O2, this transfer is “materially enhancing the company’s network position and helping to improve the connectivity experience of consumers and businesses across the country”.
Time for change
Better mobile service is way overdue in the UK. Ookla found that the UK’s slowest mobile connections are slower than most of the G7 apart from Japan, although it was among the leaders in 2018. Furthermore, it is falling ever further behind the leader, France. Also, the UK recorded the lowest Consistency score in Europe (82.56%) during Q2-Q3 2024. Only Ireland’s score was worse.
The Ookla report highlighted that indoor coverage – where 80% of phone calls originate – is especially poor and noted the many blackspots along the UK’s main railway lines. It all feels a long, long way from the promise of 5G in 2016.
Virgin Media O2 is to partly fund the spectrum acquisition by the sale of a minority stake in Cornerstone in 2024, although spectrum payments will extend beyond this calendar year. Deployment to is “occurring over the medium term, starting this year”.
The transfer is part of a wider deal struck almost exactly a year ago between Virgin Media O2 and Vodafone UK. The parties also agreed to extend their mobile network sharing arrangement for more than a decade once the merger with Three UK was complete.
