NEW YORK CITY (dpa-AFX) - British telecom major Vodafone Group Plc (VOD,
VOD.L) Wednesday announced a new network sharing agreement, significantly
extending the current agreement between Vodafone UK Limited and VMED O2 UK
Limited, called as Virgin Media O2, for more than a decade.

The deal is subject to the approval of the merger between Vodafone UK and Three
UK by the UK's Competition and Markets Authority.

The company noted that many elements of the agreement expand on the existing
arrangement between Vodafone UK and Virgin Media O2 and are independent of the
Vodafone UK and Three UK merger outcome.

However, subject to completion of the merger, the operators have agreed that
Virgin Media O2 will acquire spectrum from the newly created MergeCo.

The agreement includes plans for Virgin Media O2 to purchase spectrum at market
value from MergeCo, increasing their current holding.

It is expected that the agreement and formation of MergeCo will significantly
enhance competition in the retail and wholesale mobile markets.

Ahmed Essam, CEO, European Markets, Vodafone said, 'With this agreement and our
merger with Three, we will transform the mobile experience for over 50 million
customers in the UK for the long-term, providing significant network
improvements including more choice, better quality and greater coverage across
the country. These benefits extend to both retail and wholesale MVNO customers.
The proposed merger, together with this agreement, will boost competition by
establishing a strong third player in the UK mobile market and will improve the
balance of spectrum holdings, levelling the playing field between the UK's
mobile operators.'



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