The UK’s ‘big four’ mobile networks could soon become the big three. Vodafone and CK Hutchison, the owner of Three, have agreed a deal that would see their UK operations merge.
If approved by regulators, it would make the new company the largest operator in the UK, surpassing both EE and O2. With an estimated 27 million customers combined, the merger could affect a lot of people.
So, what should you do if you’re a Vodafone or Three customer? What about if you’re with one of the many piggyback operators such as Adsa, Lebara and Talkmobile which use those networks? Here’s everything you need to know for now.
Will Vodafone and Three definitely merge?
No. While Vodafone and Three UK officially announced an agreement to merge on 14 June 2023, that doesn’t mean it’s certain to happen.
The deal must first be approved by regulators, which usually takes a fair amount of time. In 2016, the UK’s Competition and Markets Authority (CMA) and the European Commission blocked Three UK’s proposed takeover of O2.
UK communications regulator Ofcom was also opposed to the deal, but said in 2022 that its future stance would be decided by “specific circumstances” and not “just the number of competitors”. Moving to three main networks would mirror the situation in the US, where T-Mobile and Sprint merged in 2020.
Then there’s the UK government, which may scrutinise the deal under the National Security and Investment Act 2021. It can block the deal if it believes national security will be harmed as a result.
So the merger is anything but a forgone conclusion. But if approved by all parties, the deal is expected to be completed by the end of 2024.
Why do Vodafone and Three want to merge?
On the official website announcing the agreement, Vodafone and Three highlight three key ambitions of the merger: “build one of Europe’s leading 5G networks, transform the customer experience, and give better choice and value for mobile and broadband customers across the UK”.
For customers, the companies have six main goals.
- A ‘better’ home broadband network for the same price
- Home broadband at many different price points
- A wider range of home broadband plans
- Average 5G speeds up to 6x faster over the next 10 years
- 5G coverage in more than 95% of places where people live and work over the next 10 years
- 2.5x 5G network capacity over the next 10 years
Combining forces should allow Vodafone and Three to progress with these aims more quickly. The move will also supposedly be “great for the country” and “great for competition”, despite there being one fewer mobile operator to choose from.
What will happen if I’m a Vodafone or Three customer?
For the moment, nothing. Until the merger is approved and finalised, there will be no changes to the experience for any Vodafone or Three customers. And as we’ve said, there’s no guarantee that it’ll go through.
It’s impossible to predict what will happen if the merger is completed, but Vodafone and Three are clearly suggesting that there’ll be some benefits.
What will happen if I’m with a virtual network which uses Vodafone or Three?
Of course, it’s not just Vodafone and Three customers that will be affected if this merger is approved.
There are plenty of Mobile Virtual Network Operators (MVNOs) in the UK, which pay to 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 very competitively priced.
MVNOs using Vodafone are:
- Voxi
- Asda Mobile
- Lebara Mobile
- Talkmobile
The following use Three:
- iD Mobile
- Smarty
- FreedomPop
- Honest Mobile
- Superdrug
But as with Vodafone and Three, there’ll be no changes if you’re with any of those providers until after the proposed merger goes through. There’s no cause to worry, either as “providing greater choice in the MVNO market” is specifically mentioned as a goal of the merger.