Vodafone and Three to merge – what it means for your mobile phone bills
Two of the UK’s biggest mobile providers – Vodafone and Three – have announced their intention to merge, in big news for millions of mobile users.
The deal could be set to create the UK’s largest mobile phone provider, taking their combined market share past that of the current leader, Virgin Media O2.
The Three/Vodafone merger would see the new company have around 27 million customers, while Virgin Media O2’s total stands at 24 million. In third place would be EE (part of the BT Group) with 20 million.
The Competition and Markets Authority (CMA) will be looking at the merger, issuing a statement saying, ‘With millions of consumers and many businesses relying on their services – so it’s right that the CMA reviews the impact this deal could have on competition.’
But what could the merger mean for the group’s customers, their service, and mobile phone bills?
Here is what you need to know.
What could the Vodafone/Three merger mean for customers’ bills and services?
As of yet, there are no plans to reduce or increase bills, as the company has announced there will be ‘no change to each operator’s pricing strategy’.
Instead, the benefits to customers should come in the form of increased value for money from the improved network, with the merger statement saying: ‘customers will pay the same for more’.
It’s clear from what the companies have been saying that they hope the merger will be a big boost to the network service they offer their customers, especially for the rollout of 5G.
Robert Finnegan, CEO of Three UK, described the merger news as ‘a significant step in our efforts to create a business that will build the biggest and fastest 5G mobile network in the country.’
The new company (currently dubbed ‘MergeCo’) claims it will reach ‘more than 99% of the UK population with our 5G standalone network’, meaning customers will eventually achieve a ‘six-fold increase in average data speeds’.
However, Ahmed Essam, Vodafone UK Chief Executive, has said that he hopes the combination of Vodafone UK and Three UK’ will bring more choice and better value to customers nationwide.
What could the Vodafone/Three mean for smaller companies?
Several companies currently run their own networks off of Vodafone and Three’s infrastructure.
What smaller companies use Vodafone and Three's network?
The following networks run off Vodafone’s cellular services:
- Asda Mobile
- Lebara Mobile
- Talkmobile
- Voxi
The following networks run off Three’s cellular services:
- FreedomPop
- iD Mobile
- Smarty
- Superdrug Mobile
The impact on these smaller firms is much less certain as of yet, but there is the potential for them to benefit from any investment in network coverage and infrastructure.
When could the merger happen?
Subject to regulatory approval, the merger is set to be complete before the end of 2024.
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