4 days ago
The UK's biggest ever £16.5BILLION mobile phone network is born: What it means for YOU as British arms of Three and Vodafone combine to create huge new business
Vodafone has completed its £15 billion mega-merger with Three UK creating a 'new force in UK mobile' - despite concerns it could lead to higher prices.
The mobile phone giant said the merger of the UK network businesses was officially completed on May 31, nearly two years after it was first announced.
VodafoneThree - now the biggest mobile phone network in the UK with around 27 million customers - pledged to invest £11 billion over the next 10 years to help boost its 5G capability, with £1.3 billion being spent this financial year, following the tie-up.
Despite concluding that the merger would lead to higher prices for customers, the Competition and Markets Authority (CMA) approved the deal last December.
It required the firms to make the huge investment in its network, and to cap prices of certain tariffs for at least three years.
The merger now means there are now only three main phone networks in the UK: VodafoneThree, EE (owned by BT since 2016), and O2, which merged with Virgin Media in 2021.
Others, such as iD Mobile, Smarty and Giffgaff, are dependent on the infrastructure provided by the now three main operators.
A report by Enders Analysis published in February suggested that the merged VodafoneThree would see it hold more than half of the UK's mobile network capacity. In all, it will support 29million customers.
Experts have suggested the merger is good news for the UK's mobile infrastructure, given the level of investment the firm must now make in expanding phone masts.
But consumer group Which? said last year that the CMA's approval had been a 'gamble' that may not pay off.
Its director of policy Rocio Concha said: 'For this merger to work for consumers, the CMA and Ofcom must rigorously monitor whether the merged company sticks to its commitments and be prepared to act decisively if it does not.'
Margherita Della Valle, Vodafone group chief executive, said: '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.
'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.'
The companies first announced the landmark deal in June 2023 - in a major shake up of Britain's mobile phone sector.
It was scrutinised closely by the CMA amid concerns it could substantially reduce options for mobile customers and lead to higher bills.
Canning Fok, deputy chairman of Three UK owner CK Hutchison, - said: '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.'
Vodafone owns 51% of the newly merged company and after three years will have the option to buy the rest of the merged firm.
How will the VodafoneThree merger affect you?
Will my bills go up, or the terms of my contract?
No - at least not in the short term. Existing phone contracts will be honoured subject to the annual price rises, which are based on the retail price index (RPI) plus a percentage, which will be stated in your contract.
Under the terms of the deal, the operators are required to cap the tariffs for certain mobile deals for at least three years.
It must also offer preset terms to mobile virtual network operators like VOXI, Smarty and Talkmobile for the same time period.
Will I have to change operator?
No. Vodafone and Three will retain their separate identities - as will any mobile virtual network operators using their infrastructure.
Will roaming fees or charges for international calls change?
