EE and Virgin Media have signed a new MVNO agreement that sees the BT-owned business supply its network and associated services until 2021.

The two companies said the new deal would enable Virgin’s mobile arm to grow its operations faster and provide new services.

Virgin Mobile plans to launch “more focused fixed-mobile converged offerings”, according to a spokesperson.

Financial details were not disclosed.

Virgin Mobile was the world’s first MVNO when it launched in 1999 and today has three million customers.

It launched 4G services for the first time last November, when it also revealed plans to zero rate messaging on WhatsApp and Facebook.

The Liberty Global-owned business is facing increased competition since the launch of Sky Mobile last week.

Peter Kelly, Managing Director of Virgin Mobile, said: “This winning combination with EE will give Virgin Mobile even more control and firepower to deliver innovative services to the UK mobile market.

“Virgin Mobile customers want fast speeds, flexibility and plans packed full of data - we’re going to continue to deliver.”

The deal is a boost to EE’s MVNO business, which is now part of BT’s wholesale division.

Gerry McQuade, CEO of Wholesale and Ventures, BT, said: “This has proven a successful relationship for both parties for many years and, as we enter a period of further technological change in the mobile market, we are very pleased to renew and extend our 17 year-old relationship.

“As the largest wholesale provider of telecommunications services in Europe, BT values the economy of scale that Virgin Media brings to our network.”

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