Vodafone's fresh pact is a landmark moment

(PA Archive)

It may not be the sexiest headline ever seen but today’s agreement over 5G network sharing between Vodafone and Virgin Media 02 may be one of the most important pro-growth business deal sealed in this country for a long while.

Typically, it comes on the wave of an election that will see power transferred from a Conservative party led by “unlucky general” Rishi Sunak who will not get to reap any of the benefit.

The smart piece of corporate footwork cleverly takes away one of the key potential regulatory objections to Vodafone’s planned merger with its UK competitor Three by giving VM02 the right to buy more network spectrum if the combination goes ahead.

That should unlock around £11 billion of investment in a network that is in danger of falling dangerously behind those of other major economies. The UK was one of the first countries to start the roll-out of 5G in 2019.

But by last year it had fallen to 39th among 56 advanced and developing markets for 5G availability, and 21st out of 25 developed markets for download speed with France. Germany and the Netherlands all ahead.

There is little chance of the UK returning to the 2% growth rates that was seen as par before the financial crisis without the technology infrastructure that underpins modern economies just as much as roads or railways being fir for purpose.

Successive Vodafone bosses have been making the case for consolidation in the sector for years now - and if course it suits their book. But in this case, for once, the interests of the corporate entity and the common weal are aligned.

The CMA will rightly take a close look at whether the consumer is protected if this merger goes through but most other developed countries manage with three rather than four major competing players. After the years of chaos and drift the UK simply cannot afford to lose any more ground on its rivals in an area so vital to future prosperity.