Vodafone/Three Merger Approved: What UK Customers Must Know

A new force in the UK mobile sector has emerged, as the Vodafone and Three UK merger is officially approved by the Competition and Markets Authority (CMA). The decision is expected to unleash greater levels of competition and investment across the entire market to continue transforming the UK telecoms landscape.

As part of this decision being reached, £11 billion (US$13.9bn) will be invested into a programme to build the largest and best network in the UK. designed to support advanced 5G networks, it aims to offer superior network quality to millions of customers and businesses nationwide.

Advancing UK connectivity

Both Vodafone and Three UK have welcomed the decision, highlighting that they are committed to bolstering the nation’s 5G networks. It is hoped by both companies that the joint investment will propel UK telecoms infrastructure to the forefront of European connectivity. 

“This decision creates a new force in the UK’s telecoms market and unlocks the investment needed to build the network infrastructure the country truly deserves,” Margherita Della Valle, Group CEO at Vodafone shared via a LinkedIn post. 

“Consumers and businesses will enjoy wider coverage, faster speeds and better-quality connections across the country, as we launch an £11 billion investment programme to build one of Europe’s most advanced 5G networks.”

The merger is described as a once-in-a-generation opportunity to transform digital infrastructure in the UK. From the start, Margherita Della Valle has described the combination as being, “great for customers, great for competition and great for the country.” 

Both telcos are committed to investing £11 billion to create one of Europe’s most advanced 5G networks. The new network will reach 99% of the population and benefit over 50 million customers, through significantly better quality, greater reliability and enhanced capacity for handling ever-increasing data demand. 

This demand is set to accelerate further with continued widespread adoption of disruptive technologies, such as AI.

“Great network connectivity is critical to so many elements of our daily life and is central to the UK’s economic growth ambitions,” Vodafone’s statement reads. 

“Businesses large and small depend on high-quality connectivity and advanced 5G is also crucial for the growth of the UK’s science and technology sectors, as well as improving public services and narrowing the digital divide.”

The impact of a large telco merger

The merger of both telcos is set to create a new stronger player in UK mobile. This will inevitably lead to greater competition in the market across both the retail and wholesale markets.

Critically, the network investment will require no public funding, with the CMA highlighting that millions of people who rely on mobile services will benefit as a result.

Margherita Della Valle explains: “Today’s decision creates a new force in the UK’s telecoms market and unlocks the investment needed to build the network infrastructure the country deserves. 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. 

“Today’s approval releases the handbrake on the UK’s telecoms industry, and the increased investment will power the UK to the forefront of European telecommunications.”

The UK connectivity landscape is currently undergoing a significant transition, with the UK government pledging to invest heavily in improving national broadband and connectivity experiences for all people across the country.

Vodafone and Three will study the Final Report in detail and will continue to engage with the CMA as they put in place the final undertakings. 

The merger is expected to formally complete during the first half of 2025. Vodafone will own 51% of the equity and, after three years following completion and subject to certain conditions, Vodafone may acquire Hutchison's 49% stake via a Put and Call option.

“It’s crucial this merger doesn’t harm competition, which is why we’ve spent time considering how it could impact the telecoms market,” says Stuart McIntosh, Chair of the Independent Inquiry Group leading the investigation. 

“Having carefully considered the evidence, as well as the extensive feedback we have received, we believe the merger is likely to boost competition in the UK mobile sector and should be allowed to proceed – but only if Vodafone and Three agree to implement our proposed measures.”

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