Vodafone in new network tie-up with Virgin Media O2

(Sharecast News) - Vodafone UK and Virgin Media O2 have agreed to extend and enhance their existing mobile network sharing agreement for more than a decade, forming a new company that will invest £11bn in the project. The agreement is subject to the planned merger of Vodafone and Three. If that deal goes through then Virgin Media O2 will buy spectrum "establishing three scaled mobile network operators each with better alignment of spectrum holding", the companies said in a statement on Wednesday.

Britain's competition regulator is investigating the potential merger of Vodafone and Three over concerns it could lead to higher prices for customers, poorer network quality, and fewer incentives to invest.

Reporting by Frank Prenesti for Sharecast.com