BT slumps as Virgin Media switches mobile network to Vodafone

BT was under the cosh on Wednesday as Virgin Media said it had agreed a five-year deal to switch its more than 3 million mobile customers to the Vodafone network once its agreement with BT runs out.

The new mobile virtual network operator agreement, which runs until 2026, will see Vodafone supply wholesale mobile network services, including voice and data, to Virgin Mobile and Virgin Media Business.

Virgin Media will have full access to all of Vodafone's current services and future technologies, including its 5G network.

Virgin Media's current agreement with BT Enterprise comes to an end in late 2021. Virgin Mobile 5G services are set to launch on the Vodafone network before the transition takes place.

Vodafone chief executive Nick Jeffery said: "We are delighted that Virgin has recognised the huge investments we've made, and continue to make, in building the UK's best mobile network and our role in challenging the market with new commercial services. As a result, they have chosen us to work with them in the next phase of their development.

"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."

At 1110 GMT, BT was the worst performer on the FTSE 100, with shares down 3.8% at 194.98p. Vodafone was up 0.7% at 163.16p.