Vodafone and Three have completed the £16.5billion tie-up of their British operations, creating the UK’s biggest mobile phone network in the process.
The enlarged business, named VodafoneThree, is 51 per cent owned by Vodafone, which has a major business centre in Manchester as well as a MediaCity innovation Lab, a second large business centre in Glasgow and its main UK contact centre in Stoke, with the remaining 49 per cent held by CK Hutchison, the Hong Kong-based parent company of Three.
It intends to invest £11bn over the coming decade creating one of Europe’s most advanced 5G mobile networks, including £1.3bn in the first year, part of the Competition & Markets Authority terms for allowing the mega-merger to go through last December. Regulators also insisted that both firms cap prices on their lowest-cost mobile plans for three years.
Vodafone and Three will also be required to offer pre-set prices and contract terms for wholesale services to virtual network providers, including Giffgaff and Sky Mobile.
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Critics of the transaction, which reduces the number of UK mobile phone operators to three, have expressed concern that it will lead to poorer service and higher prices for customers.
Vodafone UK’s current boss, Max Taylor, is the new company’s chief executive, while Three UK’s Darren Purkis is chief financial officer.
Margherita Della Valle, chief executive of Vodafone Group, said: ‘The merger will create a new force in UK mobile, transform the country’s digital infrastructure and propel the UK to the forefront of European connectivity.
“We are now eager to kick-off our network build and rapidly bring customers greater coverage and superior network quality.”
Under Della Valle, the UK firm has undergone a massive transformation, particularly in Europe, to help slash its debt pile and streamline operations.
It has offloaded its Spanish, Hungarian, and Italian divisions, as well as holdings in Indus Towers and Oak Holdings, the partnership that co-owns phone masts provider Vantage Towers.
In the company’s latest annual results covering the 12 months ending March 2025, its net debt slumped by more than €10billion to €22.4billion even though it reported a £346million operating loss, compared to a £3.1billion profit the prior year.
