Last Updated: 9th December 2024, 18:09
It's been huge news on the telecoms scene; two of the UK's largest mobile phone networks – Vodafone and Three – have had their merger approved by the UK's competition watchdog.
The deal is worth a whopping £16.5 billion and will create the biggest phone network in the UK with a combined 27 million customers, overtaking the likes of EE and O2.
On December 5, 2024, the Competition and Markets Authority (CMA) gave the merger the green light after it finished its investigation into the deal.
It's been impossible to move in the mobile phone world without hearing about the history-making merger, but what exactly does it mean, and will customers be better or worse off?
We've put together everything you need to know right here.
About The Merger
Initial plans for the Vodafone and Three merger first came about in June 2023, and now, in December 2024, they've been given the go-ahead by the CMA. Vodafone and Three are currently the smallest networks out of the big four that includes O2 and EE, but by merging they will become the largest network the UK has ever seen.
The two companies are expected to formally become one during the first half of 2025, and they say that merging their companies will mean a better network infrastructure and more competition in the market due to their investment.
They've also promised:
- Faster speeds
- Wider coverage
- Better quality connections around the UK
Does The Merger Have Conditions?
Of course, a merger on this scale will have to be heavily monitored by the CMA and telecoms regulator Ofcom to ensure fairness.
So, the CMA has told the pair that they must put in place a range of measures for their mega network, including:
- A Joint Network Plan – they'll need to invest £11 billion to improve their network, which is likely to be good news for the country's 5G rollout.
- Tariff Caps – they'll be required to put a price cap on selected data plans and tariffs for three years to ensure customers are protected from price hikes.
- Pre-Set Prices for Mobile Virtual Network Operators (MVNOs) – For companies like Voxi, who use the Vodafone network, their prices and contract terms will be set for three years. This means they'll be able to take advantage of the new network's coverage at competitive prices.
What Companies Currently Run Off Of Vodafone and Three's Network?
The following companies currently run from the Vodafone and Three networks:
- Smarty
- Asda Mobile
- Talkmobile
- Honest Mobile
- Voxi
- iD Mobile
- Lebara
- Superdrug Mobile
What Does It Mean For Consumers?
It's tricky to say what the deal will mean for customers when it's made official. When the plans to merge were initially announced, there were fears that it would mean higher prices for customers. However, with the CMA requiring the networks to cap selected data plans and tariffs for the first three years, it's expected that customers will be protected from any sharp price rises. Still, it's unclear at this stage which plans and tariffs will be impacted.
It's also expected that due to the £11 billion improvements Vodafone and Three must make to their network, customers will enjoy wider 5G network coverage, improving the quality it currently provides.
Vodafone CEO Margherita Della Valle said: "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."
The merger is expected to happen in the first half of next year, and only time will tell what this will truly mean for customers. Watch this space.
