Vodafone and Three, two of the UK’s biggest carriers, will merge

Ben Schoon | Jun 14 2023 - 7:11 am PT

Announced today, UK carrier Vodafone and Three have reached a deal that will see the two merge into one carrier with a goal to create “one of Europe’s leading 5G networks.”

In a press release, Vodafone UK and Three UK announced that merged network, currently referred to as “MergeCo,” will bring “a better network experience with greater coverage and reliability at no extra cost” to UK consumers. It also promises a “six-fold increase in average data speeds” by 2034 and 99% coverage of the UK with its 5G network.

From day one, 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. MergeCo will reach more than 99% of the UK population with our 5G standalone network, delivering to customers up to a six-fold increase in average data speeds by 2034.

The merged company will see Vodafone owning 51%, where Three’s parent company CK Hutchison Group Telecom Holdings Limited would own 49%. There’s no cash involved in the deal, apparently, with the two companies contributing “differential debt amounts” to reach the deal.

The deal is expected to face scrutiny from the UK’s Competition and Market Authority, but feels much like the merger of T-Mobile and Sprint in the US, which ultimately went through. Like T-Mobile and Sprint, Vodafone and Three currently sit in third and fourth place in the UK market, with O2 and EE being the biggest carriers. This merger, the press release notes, would create “a third operator with scale, levelling the competitive playing field.”