Virgin Media O2 Invest £700m 4G, 5G Network

UK Internet Service Provider (ISP) and mobile operator, Virgin Media O2, has this week pledged a significant investment in its UK network.

The operator announced that “as part of its ongoing Mobile Transformation Plan, Virgin Media O2 is set to invest around £2m per day, equivalent to approximately £700m this year, into its mobile network.”

It comes after Virgin Media O2 had “significantly extended” an existing mobile network sharing deal with Vodafone in July 2024.

Network investment

Vodafone and O2 have a long history together. It was back in 2012 when Vodafone and Telefonica UK (then owner of O2) had agreed to a network-sharing deal to accelerate the rollout of 4G in Great Britain.

Then in July 2019 Vodafone and O2 finalised a 5G network agreement so that both operators could share sites and 5G active equipment, such as radio antennas.

Now Virgin Media O2 has said as part of its Mobile Transformation Plan, it will invest £700m in 2025, “to ensure a consistent and reliable service across the UK in response to network demand reaching an all-time high.”

It said that the “comprehensive investment in new masts, small cells and 4G and 5G upgrades is underpinned by additional spectrum deployment and increased automation, providing customers with a superior mobile network experience.”

The operator said this significant investment programme comes in response to mobile network demand reaching an all-time high, with traffic more than doubling in the last five years.

The programme will be focused on expanding 4G and 5G coverage to historic ‘not-spots’ in rural and coastal areas, a dedicated small cells rollout to boost capacity in dense urban areas, and innovative solutions to address persistent network pain points including along railway lines, at airports, on motorways, and in stadiums and arenas.

Also in 2025 Virgin Media O2 complete major steps to evolve its mobile network to be fit for the future, including deploying additional spectrum, harnessing artificial intelligence, and decommissioning outdated parts of the network, including the 3G network.

Priority areas where the operator is looking to deliver significant improvements include:

• Railways: Enhancing connectivity for VMO2’s customers at stations and on trains, which poll as one of the top three locations where the public want to see improved connectivity;
• Roads: Strengthening coverage along motorways and major routes, ensuring consistent service for the two thirds of Brits who rely on connectivity for GPS maps when driving;
• Dense urban areas: Continuing to deploy small cells in cities across the UK, to boost capacity in some of the most high-demand locations;
• Hard to reach remote locations: Tackling long term not-spots with innovative solutions such as satellite backhaul to connect some of the most difficult to reach areas of the UK;
• Stadiums and Venues: Deploying Distributed Antenna Systems (DAS) and dedicated networks to ensure uninterrupted connectivity for attendees at live events, which rank in the top 10 for the general public when it comes to desire for unfaltering connectivity

“Virgin Media O2 is committed to providing our customers with a reliable connectivity experience wherever they are,” said Jeanie York, Chief Technology Officer at Virgin Media O2. “Our Mobile Transformation Plan combines the necessary financial investment with the latest technological innovation to make this a reality.”

“We’re not just upgrading infrastructure; we’re creating a platform for future innovation,” said York. “This programme ensures our customers will continue to benefit from superior reliability as new technologies and demands emerge.”

Virgin Media O2 was created when Virgin Media (owned by Liberty Global) and mobile operator O2 (owned by Telefonica) agreed they would form a 50:50 joint venture back in 2020.

The deal was finalised in 2021 after regulatory clearance, and the resulting Virgin Media O2 is now jointly owned by Liberty Global and Telefonica.