07:45 AM EDT, 07/03/2024 (MT Newswires) -- Vodafone Group ( VOD ) said Wednesday that Vodafone UK reached a new network sharing agreement with Virgin Media O2 that includes Virgin Media purchasing spectrum from the enlarged network to be created by the proposed merger of Vodafone UK and CK Hutchison Holdings' Three UK subsidiary.

Under the agreement, Virgin Media will acquire spectrum from the merged entity at market value if the merger is approved by the UK's Competition and Markets Authority, Vodafone said.

The agreement extends Vodafone's existing deal with Virgin Media for more than a decade, according to Vodafone. If approved, the merger along with the agreement would establish a third player in the UK mobile market, Vodafone Chief Executive for European Markets Ahmed Essam said.

This will enhance competition in the mobile market and allow more customers to benefit from the merged entity's 11 billion pound ($14 billion) network build-out plan over the next decade, Vodafone said.

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