Vodafone and Three merger finalized, promising enhanced 5G for UK customers

Vodafone and Three have completed their long-awaited £15 billion mega-merger, officially forming VodafoneThree and becoming the UK’s largest mobile network operator.

This monumental consolidation, bringing together approximately 27 million customers, promises a significant boost to Britain’s 5G infrastructure with an £11 billion investment pledged over the next decade.

The newly merged entity aims to deliver “one of Europe’s most advanced 5G networks,” with an initial capital expenditure of £1.3 billion earmarked for the first year.

Margherita Della Valle, chief executive of Vodafone Group, expressed her optimism for the new venture. “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,” she stated. “We are now eager to kick off our network build and rapidly bring customers greater coverage and superior network quality.”

The merger, which has been in the works for two years, faced considerable scrutiny from regulators due to concerns that reducing the number of major UK mobile operators from four to three could lead to increased prices for consumers. Despite initial warnings from the Competition and Markets Authority (CMA), the deal received approval in December, following a national security review.

As part of the regulatory approval, Vodafone and Three have made legally binding commitments to consumers. These include the substantial £11 billion network investment, guarantees around specific consumer tariffs, and a promise to upgrade 5G coverage while offering short-term customer protections against price rises.

The new company, 51% owned by Vodafone and 49% by CK Hutchison, will also implement “multi operator core network (MOCN) functionality” in its first year, allowing customers to seamlessly access both networks for improved coverage.

Max Taylor, current chief executive of Vodafone UK, will lead the new VodafoneThree. The merged entity anticipates annual cost savings of around £700 million, which bosses say will be reinvested into further network development, ultimately aiming to enhance the overall customer experience through better coverage and network quality.