Vodafone and Three have completed their £15 billion merger — the biggest shake-up to the UK's mobile landscape in years. The networks first announced plans to merge back in June 2023, triggered a rigorous investigation by the Competition and Markets Authority (CMA) that lasted over 18 months.
With everything signed and sealed, VodafoneThree is now the UK's largest mobile network with over 27 million customers. It's followed by EE (~ roughly 25 million) and O2 (~ roughly 23 million).
Are you one of the millions of existing Vodafone or Three subscribers who are now connected to VodafoneThree?
If you're already a Vodafone or Three customer, there's no need to take action. Your existing pay monthly or SIM-only plan will continue uninterrupted with no change to your monthly bill. However, the newly-created VodafoneThree is promising that customers will see some improvements to their coverage and network speed.
It's all thanks to a technology called Multi-Operator Core Networks (MOCNs), which will allow you to access Vodafone or Three's nationwide network of masts, regardless of your chosen provider. Three has built a larger 5G network, so Vodafone customers stand to gain the most from this integration.
While that's a pretty modest gain today, VodafoneThree has grand ambitions to supercharge its network with a £11 billion investment over the next decade to build what executives promise will be "one of Europe's most advanced 5G networks". There's no confirmation of rumoured plans to launch a TV service to rival Sky.
Vodafone Group Chief Executive, Margherita Della Valle commented on the behemoth £15bn merger
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Vodafone Group Chief Executive, Margherita Della Valle said: "The merger will create a new force in UK mobile, transform the country’s digital infrastructure and propel the UK to the forefront of European connectivity.
"We are now eager to kick off our network build and rapidly bring customers greater coverage and superior network quality. The transaction completes the reshaping of Vodafone in Europe, and following this period of transition we are now well-positioned for growth ahead."
One of the biggest concerns around the £15bn merger was the fate of MVNOs, or Mobile Virtual Network Operators, which offer mobile services but don't own any of the masts used by its customers. Instead, these brands lease network capacity from larger operators, like EE, O2, Three, or Vodafone.
Some of the most affordable options on the market, Voxi, Smarty Mobile, and TalkMobile, use Vodafone and Three masts.
The Competition and Markets Authority has required the newly merged VodafoneThree to place a cap on certain mobile tariffs for the next three years, protecting existing customers from immediate price increases.
That means even those with the most affordable mobile plans from Smarty Mobile or Voxi will be able to stick with the same monthly cost. Looking ahead, VodafoneThree hasn't announced which brands it will retain. We'd expect to see some of these competiting MVNO brands ditched or combined to simplify its portfolio.
The new logo for VodafoneThree combines the iconic "speechmark" from the Vodafone logo and Three's "3" side by side, but no timeline has been given for any potential rebranding of customer-facing services.
As part of its multi-year investment plans, VodafoneThree will spend £1.3 billion in the next 12 months to "accelerate its network deployment", according to company statements. Max Taylor, who currently leads Vodafone UK, has been appointed chief executive of VodafoneThree, while Three UK's Darren Purkis becomes chief financial officer.
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The journey to create VodafoneThree started back in June 2023 when the companies first announced their landmark £15 billion deal.
The CMA initially worried the deal could "substantially reduce options for mobile customers and lead to higher bills". It had particular concerns about this merger because Three is "generally the cheapest" of the main mobile networks in the UK.
Combining with Vodafone could "reduce rivalry between mobile operators to win new customers," potentially causing prices to rise. However, regulators gave approval in December 2024 after securing legally binding commitments from both companies.
These conditions include the £11 billion network investment pledge and the requirement to cap certain mobile tariffs for three years, protecting you from short-term price rises. The cap will also apply to Voxi For Now social tariffs, available for people receiving government benefits. The companies have also committed to encouraging virtual providers to access their network, allowing smaller operators to offer competitive deals for customers.
The merged company must also offer pre-set prices and contract terms to virtual network providers like Giffgaff and Sky Mobile for three years.
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