If you opt for a SIM-only plan or buy a phone with a contract, it can seem like there are many different networks in Great Britain.
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 benefits.
But what if that number dropped to three? That’s what could happen soon, with Vodafone and Three UK owner CK Hutchinson agreeing to a merger in June 2023.
So, what’s the latest? When can the two networks merge, and what does this mean for customers? Here’s everything you need to know.
Will Vodafone and Three merge permanently?
No. While Vodafone and Three UK officially announced a merger agreement June 14, 2023That doesn’t mean it will definitely happen.
This will be investigated by the British regulator the Competition and Markets Authority (CMA) for much of 2024. Concerns about the impact of reduced competition were a major issue, leading to a more detailed ‘Phase 2’ investigation.
The final results of this are expected to be published by December 7, 2024 appearance. However, the CMA has tentatively concluded that the negative impact of reduced competition can be offset by price commitments and boosts to the UK’s 5G network.
You can follow the latest news about the investigation on the UK government website, including more details about how the CMA is investigating.
If the merger is approved, it must be deemed safe under the National Security and Investment Act 2021. The UK government could block the deal if it believes it would harm national security.
Should the merger ultimately 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 deal, Vodafone and Three highlighted three key ambitions of the merger: “to build one of Europe’s leading 5G networks, transform the customer experience and deliver better choice and value to mobile and broadband customers in the UK”.
The companies have six main goals for customers.
- A ‘better’ broadband home network for the same price
- Broadband for the home in many different price ranges
- A wider range of broadband plans for your home
- Average 5G speeds up to 6x faster over the next 10 years
- 5G coverage in more than 95% of the places where people live and work in the next ten years
- 2.5x 5G network capacity in the next ten years
By joining forces, Vodafone and Three should be able to make faster progress on these objectives. The move would also be “great for the country” and “great for the competition”, despite having one less mobile operator to choose from.
What happens if I am a Vodafone or Three customer?
Nothing for now. Until the merger is approved and completed, there will be no changes to the experience for Vodafone or Three customers. And like we said, there’s no guarantee it will happen.
It’s impossible to predict what will happen once the merger is completed, but Vodafone and Three clearly suggest there will be some benefits.
What happens if I have a virtual network that uses Vodafone or Three?
Of course, it’s not just Vodafone and Three customers who will be affected if this merger is approved.
There are numerous Mobile Virtual Network Operators (MVNOs) in the UK, who pay to use the infrastructure of one of the main operators rather than owning it themselves. As a result, their contracts and SIM-only subscriptions are often very competitively priced.
MVNOs using Vodafone are:
- Voxi
- Asda Mobile
- Lebara mobile
- Talk mobile
The following use Three:
- iD mobile
- Smart
- Honest mobile
- Super drug
But as with Vodafone and Three, there won’t be any changes if you work for either of these providers until after the proposed merger. There is also no cause for concern as “providing greater choice in the MVNO market” is specifically mentioned as the purpose of the merger.
