- Vodafone-Three merger is officially completed
- The new VodafoneThree network is one of the UK’s biggest
- Company promises major investment in UK 5G networks
UK phone networks Vodafone and Three have announced the successful completion of their mega merger.
The move, which sees the number of UK mobile networks shrink from four to three, combines two of the country’s largest providers, with the new VodafoneThree business covering around 29 million UK consumer and business customers.
“The merger will create a new force in UK mobile, transform the country’s digital infrastructure and propel the UK to the forefront of European connectivity,” said Margherita Della Valle, Vodafone Group Chief Executive. “We are now eager to kick-off our network build and rapidly bring customers greater coverage and superior network quality. The transaction completes the reshaping of Vodafone in Europe, and following this period of transition we are now well-positioned for growth ahead.”
VodafoneThree is here
Nearly 1000 days after the deal was first announced, the new combined entity says it will now look to invest heavily in boosting UK mobile coverage and infrastructure.
This includes £11 billion in spending over the next 10 years (including £1.3 billion over this first year) to create what the company claims will be, “one of Europe’s most advanced 5G networks”, with 5G Standalone network investment looking to,” propel the UK’s mobile infrastructure to the forefront of European connectivity.”
VodafoneThree will be led by Max Taylor, who was CEO of Vodafone UK, with Three UK’s Darren Purkis is appointed Chief Financial Officer. It is not thought any jobs will be lost in the merger.
The new company will be 51% owned by Vodafone and 49% by CKHGT, parent company of Three UK via its CK Hutchison arm.
“As we have demonstrated in other European markets, scale enables the significant investment needed to deliver the world-beating mobile networks our customers expect, and the Vodafone and Three merger provides that scale,” noted Canning Fok, Deputy Chairman of CK Hutchison and Executive Chairman of CKHGT.
There was no mention of pricing changes or other alterations to pricing strategies for the time being, but asides from the cosmetic changes, it seems customers may have little to worry about.
This is despite initial warnings from the UK’s Competition and Markets Authority, which had previously cautioned the merger could, “lead to price increases for tens of millions of mobile customers, or see customers get a reduced service such as smaller data packages in their contracts.”
The CMA had also highlighted potential effects on MVNOs such as Lyca Mobile, Sky Mobile and Lebara which utilise the existing network operators, making it more difficult for MVNOs to “secure competitive terms”.
However in December 2024, the CMA gave its approval to the deal, saying it was satisfied a commitment to investment and spending from VodafoneThree would avoid any of these potential concerns.
