Virgin Media O2 could cut ties on Vodafone MVNO deal

Date:
Mon, 14 Feb 2022 11:24:31 +0000

Description:
Virgin Media O2 and Vodafone reached five-year agreement that started in 2021.

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Virgin Media O2 has reportedly given notice to end its Mobile Virtual Network Operator (MVNO) agreement with Vodafone.

MVNOs do not own their own mobile infrastructure and instead deliver services using another operators network. When Virgin Mobile launched in 1999, it was the worlds first MVNO and the model has since been replicated around the world.

Virgin Mobile had relied on EEs network since then, having initially gone
live with predecessors One2One, but switched to Vodafone in part because it was promised access to the full range of Vodafone technology and services including 5G. Vodafone consolidation

The five-year deal only came into effect last year but was signed in 2019 before Virgin Medias merger with O2. That deal meant Virgin Media now had access to its own mobile network, making the deal with Vodafone somewhat superfluous.

According to the Mail on Sunday, Virgin Media O2 has told bondholders that moves have been taken to end the arrangement with Vodafone four years early.

The company declined to comment to TechRadar Pro .

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The decision by Virgin Media to switch from EE to Vodafone was widely seen as a coup for the latter and the development will be a blow to the Newbury-based operator.

Vodafone has made plenty of headlines in recent weeks, amid reports it is under renewed pressure from constructive activist investor Cevin Capital
which is said to have acquired a stake in the operator and is believed to be pushing for consolidation.

The company has confirmed talks with rivals in several European markets about possible mergers following speculation of a potential tie-up with UK rival Three in recent weeks. Vodafone has also rejected a 11 billion offer from Iliad for its Italian business. If you want to see what the operator has to offer then take a peek at the best Vodafone 5G mobile deals

Via Mail on Sunday



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Link to news story: https://www.techradar.com/news/virgin-media-o2-could-cut-ties-on-vodafone-mvno -deal/


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