When choosing a SIM-only deal or buying a phone on contract, it might look like there are loads of different networks in the UK.
However, many of these are so-called ‘piggyback’ providers, or Mobile Virtual Networks (MVNOs). They pay to use the networks of one of the ‘big four’ companies – EE, O2, Vodafone and Three – while still offering their own unique plans and perks.
But what if that were to go down to three? That’s what could happen soon, with Vodafone and Three UK owner CK Hutchinson agreeing to merge back in June 2023.
So, what’s the latest? When might the two networks combine, and what will it mean for customers? Here’s everything you need to know.
Will Vodafone and Three definitely merge?
No. While Vodafone and Three UK officially announced an agreement to merge on 14 June 2023, that doesn’t mean it’s certain to happen.
For much of 2024, it’s been investigated by the UK’s Competition and Markets Authority (CMA) regulator. Concern over the impact of reduced competition has been a major concern, leading to a more detailed ‘phase 2’ investigation.
The final results of this are due to be published by 7 December 2024 at the latest. However, the CMA has provisionally concluded that the negative impact of reduced competition could be offset by commitments to price promises and boosts to the UK’s 5G network.
You can track the latest from the inquiry on the UK Government website, including more details on how the CMA is investigating.
If approved, the merger would then have to be deemed safe under the National Security and Investment Act 2021. The UK Government can block the deal if it believes national security will be harmed as a result.
Should the merger finally go through, it would mirror the situation in the US, where T-Mobile and Sprint merged in 2020 to join Verizon and AT&T as the only networks.
Why do Vodafone and Three want to merge?
On the official website announcing the agreement, Vodafone and Three highlight three key ambitions of the merger: “build one of Europe’s leading 5G networks, transform the customer experience, and give better choice and value for mobile and broadband customers across the UK”.
For customers, the companies have six main goals.
- A ‘better’ home broadband network for the same price
- Home broadband at many different price points
- A wider range of home broadband plans
- Average 5G speeds up to 6x faster over the next 10 years
- 5G coverage in more than 95% of places where people live and work over the next 10 years
- 2.5x 5G network capacity over the next 10 years
Combining forces should allow Vodafone and Three to progress with these aims more quickly. The move will also supposedly be “great for the country” and “great for competition”, despite there being one fewer mobile operator to choose from.
What will happen if I’m a Vodafone or Three customer?
For the moment, nothing. Until the merger is approved and finalised, there will be no changes to the experience for any Vodafone or Three customers. And as we’ve said, there’s no guarantee that it’ll go through.
It’s impossible to predict what will happen if the merger is completed, but Vodafone and Three are clearly suggesting that there’ll be some benefits.
What will happen if I’m with a virtual network which uses Vodafone or Three?
Of course, it’s not just Vodafone and Three customers that will be affected if this merger is approved.
There are plenty of Mobile Virtual Network Operators (MVNOs) in the UK, which pay to use the infrastructure from one of the main operators rather than owning it themselves. As a result, their contracts and SIM-only plans are often very competitively priced.
MVNOs using Vodafone are:
- Voxi
- Asda Mobile
- Lebara Mobile
- Talkmobile
The following use Three:
- iD Mobile
- Smarty
- Honest Mobile
- Superdrug
But as with Vodafone and Three, there’ll be no changes if you’re with any of those providers until after the proposed merger goes through. There’s no cause to worry, either as “providing greater choice in the MVNO market” is specifically mentioned as a goal of the merger.
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