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3w ago

£15bn Vodafone-Three merger establishes VodafoneThree as UK’s largest mobile network

Under CMA conditions, VodafoneThree will cap select mobile tariffs for three years as it begins a £1.3bn investment this year in a decade-long £11bn 5G upgrade plan.

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Margherita Della Valle, chief executive of Vodafone Group, has said the merger will “create a new force in UK mobile”
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Overview

  • Vodafone and Three UK officially merged on May 31 to form VodafoneThree, serving about 27 million customers and becoming the UK’s largest mobile operator.
  • The Competition and Markets Authority approved the £15 billion deal in December on condition that the new group invest in a combined 5G network and cap certain tariffs for three years.
  • VodafoneThree has pledged to spend £11 billion over the next decade on 5G infrastructure, including £1.3 billion of capital expenditure in the current financial year.
  • Vodafone holds a 51 percent stake in the merged company with CK Hutchison owning 49 percent and Vodafone retaining the option to buy the remainder after three years; the entity expects to generate £700 million in annual cost and capex synergies by year five.
  • The merger reduces the number of major UK mobile operators from four to three and includes commitments to offer competitive wholesale deals to mobile virtual network operators.