Virgin Mobile defects from BT to Vodafone in new five-year mobile agreement

The end of a 20-year relationship for BT as Liberty Global-owned Virgin Media strikes new five-year mobile deal with Vodafone

Virgin Mobile, the mobile virtual network operator owned by Liberty Global, is to end its 20-year relationship with BT-owned EE and switch to Vodafone.

The five-year agreement follows speculation that the company was looking for a new network partner due to concerns over its relationship with EE following its 2015 £12.5bn acquisition by BT.

The deal will see Vodafone host Virgin Mobile services, including 5G, from late-2021. However, Virgin says it intends to launch its new 5G services "in the near future", suggesting that it will start-up 5G services before the transition date.

The deal marks the end of Virgin's 20-year relationship with EE; BT's shares fell 4.7 per cent following the news that it was losing the contract with the UK's largest MVNO.

"The successful relationship between BT and Virgin Media spans nearly 20 years and they remain a highly valued customer," a BT spokesperson said.

Virgin Mobile is promising that as a 'full MVNO', it will retain full control over the products and services it offers, which means existing customers will not need to change their SIM cards as part of this agreement. These will be switched over in the background by Virgin Mobile.

Lutz Schüler, Virgin Media CEO claimed that the deal would "bring a host of fantastic benefits and experiences to our customers, including 5G services in the near future".

He added: "It will open up a whole new world of opportunity for Virgin Media as we focus on becoming the most recommended brand for customers, and bring our mobile and broadband connectivity closer together in one package for one price."

Vodafone UK CEO Nick Jeffery was, naturally, "delighted" to have acquired Virgin Media's business.

He continued: "This is an exciting deal between two great British brands. We are combining our strong heritage in innovation to create a world without limits for our customers through unlimited data offers and 5G."