Vodafone Three £15billion merger given green light to go ahead – what it means for you

Vodafone and Three have been given the green light for their £15billion merger – in a move that will create the UK's biggest mobile network with 27 million customers.

The Competition and Markets Authority (CMA) said the deal can go ahead if both companies agree to invest billions to roll out a combined 5G network across the UK. Both mobile networks must also cap certain mobile tariffs for three years, to create "shorter term" protection for customers. The CMA had previously raised concerns that the merger could lead to higher phone bills.

The deal is expected to complete during the first half of 2025. Vodafone will own 51% of the equity and after three years will have the option to buy the rest of the merged company. It comes after O2 and Virgin Media merged in 2021, while BT purchased rival EE in 2016.

If you're a Vodafone or Three customer, there has been no announcement of price rises or change to service today. This means you should carry on paying your phone bill as normal. If there are any changes to your service later down the line, you should be contacted by either company.

Ernest Doku, Uswitch telecoms expert, said: “One of the legally binding terms of the merger set out by the CMA is that selected mobile tariffs and data plans will be capped for three years to protect customers from short-term price rises. This should mean a certain number of consumers will be protected. As details are yet to be released, customers should stay alert to any changes in terms that may come into effect.

“Both Three and Vodafone have argued that this merger is necessary to provide the improved network that consumers expect, and if they can deliver on this, there is a strong chance that it could give everyday consumers noticeable value. There is also evidence to suggest that merging of both networks will boost competition between network operators in the long term, which will benefit customers with increased choice and better prices.“

Margherita Della Valle, Vodafone Group CEO, said: “Today’s decision creates a new force in the UK’s telecoms market and unlocks the investment needed to build the network infrastructure the country deserves. Consumers and businesses will enjoy wider coverage, faster speeds and better-quality connections across the UK, as we build the biggest and best network in our home market. Today’s approval releases the handbrake on the UK’s telecoms industry, and the increased investment will power the UK to the forefront of European telecommunications.”

Canning Fok, Deputy Chairman of CK Hutchison and Chairman of CK Hutchison Group Telecom Holdings, said: “We have been operating telecoms businesses in the UK for over three decades and Three UK for the past two. We have invested in the people and the infrastructure, helping to bring the benefits of mobile connectivity to UK businesses and consumers. When Three and Vodafone are combined, CK Hutchison will fully support the merged business in implementing its network investment plan, the cornerstone of today’s approval by the CMA, transforming the UK’s digital infrastructure and ensuring customers across the country benefit from world-beating network quality.”

Stuart McIntosh, chair of the independent inquiry group leading the CMA investigation, said: “It’s crucial this merger doesn’t harm competition, which is why we’ve spent time considering how it could impact the telecoms market. Having carefully considered the evidence, as well as the extensive feedback we have received, we believe the merger is likely to boost competition in the UK mobile sector and should be allowed to proceed – but only if Vodafone and Three agree to implement our proposed measures.“

Victoria Beckham's new cleansing duo launch already has shoppers raving its ‘one of the best’

About The Author