Vodafone and Three plan to merge, forming largest operator

The fourth and third operator by market share this morning announced that they will combine. This is Vodafone Three and Vodafone Three. The company that is merged would jump over both EE (the present No.1) as well as O2 (the No.2), becoming the nation’s largest operator but at the same decreasing competition since, when there were four companies There will now be just three.

The proposed agreement, Vodafone would own 51 percent of the company while CK Hutchinson Group Telecom Holdings (the operator of the Three brand) will hold 49%..

Naturally, as is the case when it comes to these kinds of situations, great promises are made to customers to distract everyone from the fact that there’ll have less competition on the marketplace if this agreement is signed. “Millions of customers of Vodafone UK and Three UK will enjoy a better network experience with greater coverage and reliability at no extra cost, including through certain flexible, contract-free offers with no annual price increases, and social tariffs” The joint press release says.

The business combined is initially referred to as MergeCo (so innovative! ) It could potentially reach more than 99% of the UK populace with the standalone 5G network “delivering to customers up to a six-fold increase in average data speeds by 2034”.


MergeCo is expected to invest PS11 billion into the UK over the course of ten years as well as the fact that it has “a best-in-class 5G network in place sooner” (compared to the other network, which It’s not stated), “the merger will deliver up to PS5 billion per year in economic benefit by 2030” whatever this signifies. Each and every hospital within the UK will be provided with access to standalone 5G in 2030. For what the value.

Additionally, by 2030 MergeCo will be able to provide fixed wireless accessibility to 82% homes. The current Vodafone UK CEO Ahmed Essam is set to become MergeCo CEO. Currently Three UK CFO Darren Purkis is expected to assume the position as MergeCo CFO.


The deal is anticipated to conclude before the end of the year, subject to regulatory as well as shareholder approvals. The latter of which can drag the process ahead significantly.

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