he Competition and Markets Authority (CMA) has approved the merger of Vodafone and Three, combining their operations into the UK’s largest mobile network with over 27 million customers. The deal, valued at £16.5bn, includes a commitment to invest £11bn in 5G network upgrades and measures to protect customers from immediate price increases.
Under the CMA’s conditions, Vodafone and Three must:
- Retain specific mobile tariffs and data plans for at least three years.
- Provide competitive wholesale deals to mobile virtual network operators such as Sky Mobile and Lyca.
- Commit to significant 5G network enhancements aimed at improving coverage and connection speeds across the UK.
The CMA stated that these measures are designed to ensure the merger benefits consumers and maintains healthy competition in the mobile market.
The deal, which brings together the UK’s third and fourth largest network operators, has faced criticism from rivals like BT and concerns over its impact on customer bills. However, Vodafone CEO Margherita Della Valle argued the merger would lead to improved services without additional public funding or customer costs.
“This merger unlocks the investment needed to build the network infrastructure the country deserves,” Della Valle said. “Consumers and businesses will enjoy better connections across the UK.”
The combined company will be co-owned, with Vodafone holding a 51% stake and Three’s parent company, CK Hutchison, owning the remaining 49%. Vodafone is expected to buy out Hutchison's share after three years.
The CMA will oversee the implementation of the agreement alongside Ofcom, ensuring that the companies adhere to their investment and competition commitments.
The merger, which is set to formally complete in the first half of 2025, is anticipated to stabilize the UK mobile market by consolidating networks and ending a cycle of low investment.
