The UK’s ‘big four’ mobile networks could soon become the big three. Vodafone and CK Hutchison, the owner of Three, have reached an agreement which would see their UK operations merged.
If approved by regulators, it would make the new company the biggest operator in the UK, overtaking both EE and O2. With around 27 million customers combined, the merger could affect a lot of people.
So what should you do if you are a Vodafone or Three customer? What if you are with one of the many piggyback operators such as Adsa, Lebara and Talkmobile that use these networks? Here’s everything you need to know for now.
Will Vodafone and Three definitively merge?
No. Although Vodafone and Three UK officially announced a merger deal on June 14, 2023, that doesn’t mean it’s going to happen for sure.
The deal must first be approved by regulators, which usually takes a long time. In 2016, the UK Competition and Markets Authority (CMA) and the European Commission blocked the proposed takeover of O2 by Three UK.
UK communications regulator Ofcom also opposed the deal, but said in 2022 that its future position would be determined by “specific circumstances” and not “just the number of competitors”. The move to three main networks would mirror the situation in the United States, where T-Mobile and Sprint merged in 2020.
Then there’s the UK government, which can review the deal under the National Security and Investment Act 2021. He can block the deal if he thinks national security will be affected.
The merger is therefore anything but inevitable. But if approved by all parties, the deal is expected to be completed by the end of 2024.
Why Vodafone and Three want to merge?
On the official website announcing the deal, Vodafone and Three highlight three key ambitions of the merger: “to build one of Europe’s leading 5G networks, transform the customer experience and deliver better choice and value to mobile and broadband customers across the UK”.
For customers, companies have six main goals.
- A “better” home broadband network for the same price
- Home broadband at many different prices
- 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 where people live and work in the next 10 years
- 2.5x the capacity of the 5G network over the next 10 years
The joining of forces should allow Vodafone and Three to move forward more quickly on these objectives. This decision will also be said to be “great for the country” and “great for the competition”, although there will be one less mobile operator to choose from.
What if I’m a Vodafone or Three customer?
Nothing for the moment. Until the merger is approved and finalized, there will be no changes to the experience for Vodafone or Three customers. And like we said, there’s no guarantee it will pass.
It’s impossible to predict what will happen if the merger goes through, but Vodafone and Three clearly suggest there will be benefits.
What will happen if I’m with a virtual network that uses Vodafone or Three?
Of course, it’s not just Vodafone and Three customers who will be affected if this merger is approved.
There are many mobile virtual network operators (MVNOs) in the UK, who pay to use the infrastructure of one of the major operators rather than owning it themselves. As a result, their SIM-only contracts and plans often come at very competitive prices.
The MVNOs using Vodafone are:
- Wow
- Asda-Mobile
- Lebara Mobile
- talk mobile
The following use three:
- mobile id
- Smarty
- FreedomPop
- honest mobile
- Superdrug
But as with Vodafone and Three, there will be no change if you are with one of these providers until the proposed merger is complete. There’s no need to worry either, as “providing greater choice in the MVNO market” is specifically mentioned as an objective of the merger.
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