When looking for a SIM-only deal or purchasing a phone on contract, the UK market may seem flooded with various networks. However, many of these are what we call ‘piggyback’ providers or Mobile Virtual Networks (MVNOs). These providers pay to utilize the networks of one of the ‘big four’ companies – EE, O2, Vodafone, and Three – while offering their unique plans and perks.
But what if this were to reduce to three? This is a possibility with Vodafone and Three UK owner CK Hutchinson agreeing to merge back in June 2023.
So, what is the latest update? When can we expect the two networks to merge, and how will it impact customers? Here’s everything you need to know.
Will Vodafone and Three definitely merge?
No. While an agreement to merge was officially announced by Vodafone and Three UK on 14 June 2023, it is not a guaranteed occurrence. The UK’s Competition and Markets Authority (CMA) has been investigating the merger throughout 2024, with concerns over reduced competition leading to a more detailed ‘phase 2’ investigation.
The final results of this investigation are expected to be published by 7 December 2024 at the latest. The CMA has tentatively concluded that the negative impact of reduced competition could be balanced by commitments to price guarantees and enhancements to the UK’s 5G network.
If the merger is approved, it will also need to pass the National Security and Investment Act 2021 to ensure it is safe. The UK Government has the authority to block the deal if it believes national security will be compromised as a result.
If the merger does go through, it would resemble the situation in the US where T-Mobile and Sprint merged in 2020, joining Verizon and AT&T as the only major networks.
Why do Vodafone and Three want to merge?
On their official website, Vodafone and Three highlight three key goals of the merger: to “build one of Europe’s leading 5G networks, transform the customer experience, and provide better choice and value for mobile and broadband customers across the UK”.
For customers, the companies have outlined six main objectives.
- A ‘better’ home broadband network at the same price
- Home broadband options at various price points
- A wider range of home broadband plans
- Average 5G speeds up to 6 times faster over the next 10 years
- 5G coverage in over 95% of residential and work areas over the next 10 years
- 2.5 times the 5G network capacity over the next 10 years
By joining forces, Vodafone and Three aim to accelerate progress towards these goals. The merger is also expected to be beneficial for the country and competition, despite reducing the number of mobile operators to choose from.
What will happen if I’m a Vodafone or Three customer?
For now, there will be no changes for any Vodafone or Three customers until the merger is approved and finalized. And as mentioned earlier, there is no guarantee that it will happen.
It is uncertain what the impact will be if the merger is completed, but Vodafone and Three are hinting at potential benefits.
What will happen if I’m with a virtual network that uses Vodafone or Three?
If the merger is approved, it will not only affect Vodafone and Three customers but also Mobile Virtual Network Operators (MVNOs) in the UK. These MVNOs pay to utilize the infrastructure of the main operators rather than owning it themselves, resulting in competitively priced contracts and SIM-only plans.
Some MVNOs using Vodafone are:
- Voxi
- Asda Mobile
- Lebara Mobile
- Talkmobile
And some MVNOs using Three are:
- iD Mobile
- Smarty
- Honest Mobile
- Superdrug
However, until the proposed merger is finalized, there will be no changes for customers of these providers. The merger aims to enhance choice in the MVNO market, so there is no need to worry.
