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What the Vodafone-Three £16bn merger means for customers

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Merger deal is expected to create Britain’s largest mobile operator.

Plans for the UK’s biggest mobile network with 27 million customers have been given the go-aheadThe £16.5bn deal can proceed if both companies agree to invest billions to boost Britain’s 5G network as well as place a cap on some mobile tariffs and data for at least three years to protect customers from “short-term” price rises.

It must also offer three-year preset prices and contract terms for wholesale services such as such as Sky Mobile, Tesco Mobile, Lyca Mobile, Lebara and iD Mobile who do not own their own networks and so rely on access to provide their own retail mobile services.and will be monitored by both the CMA and Ofcom, the telecoms regulator. The merged company is required to publish an annual report setting out its progress.

Ofcom said it expects demand for mobile data to continue to grow to meet changing customer needs. Operating a mobile network involves high fixed costs and Ofcom said significant investment in mobile networks will be required to deploy the capacity needed to carry more mobile traffic, as well as in new technologies, including 5G standalone.

Vodafone chief executive Margherita Della Valle said: “Today’s decision creates a new force in the UK’s telecoms market and unlocks the investment needed to build the network infrastructure the country deserves.

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