Britain’s mobile phone landscape changed forever today as Vodafone and Three officially completed their £16.5 billion mega-merger, creating the UK’s largest mobile network with a staggering 27 million customers.
The newly formed ‘VodafoneThree’ company overtakes BT’s EE as the nation’s biggest mobile operator, marking the most significant shake-up in the telecoms industry for nearly a decade and reducing the number of major UK networks from four to three.
WHAT’S CHANGING FOR CUSTOMERS
If you’re a Vodafone or Three customer, here’s what you need to know:
Immediate changes:
- Your current contract remains unchanged – no immediate price increases
- Phone numbers, tariffs and data allowances stay the same
- Both Vodafone and Three stores remain open
- Customer service numbers unchanged for now
- Sub-brands like VOXI (Vodafone) and SMARTY (Three) continue operating
Coming improvements:
- Faster 5G speeds as networks combine
- Better coverage in rural and urban areas
- Improved indoor signal strength
- Enhanced network capacity in busy areas
THE £11 BILLION PROMISE
VodafoneThree has pledged a massive £11 billion investment over the next decade to transform Britain’s mobile infrastructure, with £1.3 billion being spent in the first year alone.
The company promises:
- 99% of UK population covered by 5G Standalone network by 2034
- Every school and hospital to have 5G access by 2030
- 82% of households able to access 5G home broadband by 2030
- Faster rollout of next-generation mobile technology
Margherita Della Valle, Vodafone Group chief executive, insisted the investment would be “entirely self-funded,” meaning “no extra costs from public funding and no extra cost for our customers.
WILL YOUR BILLS GO UP?
The Competition and Markets Authority (CMA) initially warned the merger could lead to higher prices for millions of customers. However, to gain approval, VodafoneThree agreed to:
- Cap certain mobile tariffs for three years
- Protect existing customers from immediate price rises
- Maintain competitive deals for mobile virtual network operators (MVNOs)
Industry analysts suggest prices may eventually rise across the sector as competition reduces from four to three major players, but immediate bill shocks are unlikely.
THE NETWORK GIANTS
The UK mobile market now looks like this:
- VodafoneThree – 27 million customers (NEW LEADER)
- EE (BT) – 20 million customers
- O2 (Virgin Media) – 24 million customers
JOBS AND STORES
While the companies claim no immediate job losses are planned, unions have warned the merger could eventually lead to 1,600 redundancies as duplicate roles are eliminated.
Both Vodafone and Three stores will initially remain open, though industry experts expect some closures in areas where both networks have branches close together.
WHAT HAPPENS TO YOUR PHONE?
Your existing handset will work exactly as before. In fact, you may notice improvements:
- Better signal in previously poor coverage areas
- Faster data speeds as networks combine
- Reduced congestion in busy locations
- Improved reliability
THE SMALL PRINT
VodafoneThree is 51% owned by Vodafone and 49% by Three’s parent company CK Hutchison. After three years, Vodafone has the option to buy out its partner completely if the business reaches a valuation of £16.5 billion.
The merged company will be led by Max Taylor (formerly Vodafone UK boss) as CEO, with Three UK’s Darren Purkis as Chief Financial Officer.
CUSTOMER COMPLAINTS
Some Three customers have already reported network issues, with users complaining of “non-existent or extremely slow data” over the weekend. Three’s support line blamed “network faults” – potentially linked to the merger transition.
One frustrated customer posted: “My Three Business SIMS have hit the toilet in speeds over the past 6 months. I spend 99% of my phone use on WIFI calling.”
WHAT CUSTOMERS ARE SAYING
Early reaction has been mixed:
Investing £11bn on 5G tech the majority of the British public doesn’t want, a very curious business plan,” wrote one sceptical customer.
Another added: “I have a growing list of THREE not-spots, including Didcot rail station to Oxford. I’d like to contact VodafoneThree to suggest new mast locations.”
THE VERDICT
While VodafoneThree promises a “vastly superior mobile experience,” the real test will come over the next few years as the networks integrate and the promised investments materialise.
For now, customers can expect business as usual – but with the UK mobile market forever changed, the pressure is on for the new giant to deliver on its bold promises or face the wrath of 27 million customers.
The bottom line: Your service continues unchanged for now, but expect gradual improvements in coverage and speed. Keep an eye on your bills when contracts renew, as the reduced competition could eventually mean higher prices across the board.
