Gadgets
Vodafone & Three Merger: What It Means For You
When selecting a SIM-only deal or purchasing a phone on contract, it may seem like there are numerous networks in the UK. However, many of these are what are known as ‘piggyback’ providers or Mobile Virtual Networks (MVNOs). They pay to utilize the networks of one of the ‘big four’ companies – EE, O2, Vodafone, and Three – while still offering their own unique plans and benefits.
But what if the number of networks were to decrease to three? This is a possibility with Vodafone and Three UK owner CK Hutchinson agreeing to merge in June 2023. So, what is the latest update? When could the two networks merge, and how will it impact customers? Here is everything you need to know.
Will Vodafone and Three definitely merge?
No, while Vodafone and Three UK announced an agreement to merge on 14 June 2023, it is not certain to happen. The UK’s Competition and Markets Authority (CMA) regulator has been investigating the merger for most of 2024. Concerns about the impact of reduced competition have led to a more detailed ‘phase 2’ investigation. The final results are expected to be published by 7 December 2024 at the latest. The CMA has tentatively concluded that any negative impact from reduced competition could be offset by commitments to price promises and enhancements to the UK’s 5G network.
If the merger is approved, it would also need to be deemed safe under the National Security and Investment Act 2021, with the UK Government having the power to block the deal if it poses a threat to national security. If the merger goes ahead, it would resemble the situation in the US where T-Mobile and Sprint merged in 2020 to join Verizon and AT&T as the only networks.
Why do Vodafone and Three want to merge?
On the official website announcing the agreement, Vodafone and Three outline three key goals of the merger: to build one of Europe’s leading 5G networks, transform the customer experience, and offer better choice and value for mobile and broadband customers across the UK. For customers, the companies have six main objectives.
- A ‘better’ home broadband network for the same price
- Home broadband at various price points
- A wider range of home broadband plans
- Average 5G speeds up to 6x faster over the next 10 years
- 5G coverage in over 95% of places where people live and work in the next 10 years
- 2.5x 5G network capacity over the next 10 years
By joining forces, Vodafone and Three should be able to achieve these goals more efficiently. The merger is also expected to be beneficial for the country and competition, despite there being one less mobile operator to choose from.
What will happen if I’m a Vodafone or Three customer?
Currently, there will be no changes for any Vodafone or Three customers until the merger is approved and finalized. It is uncertain whether the merger will proceed. If the merger is completed, it is impossible to predict what the impact will be, but Vodafone and Three suggest that there will be some advantages.
What will happen if I’m with a virtual network which uses Vodafone or Three?
It’s not only Vodafone and Three customers who will be affected if the merger is approved. There are numerous Mobile Virtual Network Operators (MVNOs) in the UK that use the infrastructure from one of the main operators rather than owning it themselves. As a result, their contracts and SIM-only plans are often competitively priced.
MVNOs using Vodafone include Voxi, Asda Mobile, Lebara Mobile, and Talkmobile. MVNOs using Three include iD Mobile, Smarty, Honest Mobile, and Superdrug. There will be no changes for customers of these providers until after the proposed merger is completed. The merger aims to provide greater choice in the MVNO market.
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