The Vodafone-Three merger has officially been completed as both companies celebrated the end of a journey that began in June 2023, when the merger was first proposed.
The initial proposal was met with concern about reduced competitiveness in the UK, as a region that, prior to the merger, had four mobile network operators (MNOs) – a figure that will now go down to three. Vodafone-Three, EE (which is owned by BT) and O2 (a joint venture with Virgin Media) represent these three.
Following a lengthy investigation from the UK Competition and Markets Authority (CMA), the merger was approved in December 2024 – subject to commitments.
These commitments span network investment and integration – as both companies have pledged to invest £11 billion over a 10 year period to upgrade and integrate their networks – capping mobile tariffs and data plans for three years to safeguard consumers against price increases, and offering pre-set prices and contract terms to mobile virtual network operators (MVNOs) for three years.
In analysis released by Analysys Mason, the Vodafone-Three merger is part of a growing trend towards a shrinking number of MNOs operating in countries, painting a wider picture of the pressures facing MNOs.
The analysis suggested that Europeans living in a country with three MNOs is anticipated to grow to 56% between 2015-2025; supported by other high-profile mergers including MÁSMÓVIL and Orange in Spain at the beginning of last year.
It also reported that new mobile market entrants launched in the last 10 years have struggled to scale and operate profitably, further supporting the suggestion that countries with only three MNOs are forecast to grow.
Reactions to the news
In welcoming the news, 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. The transaction completes the reshaping of Vodafone in Europe, and following this period of transition we are now well-positioned for growth ahead.”
In a LinkedIn post following the news, she wrote that VodafoneThree, the company’s new name, will “transform the UK’s mobile infrastructure”.
As part of the merger, Max Taylor will be appointed as Chief Executive of VodafoneThree and Three UK’s Darren Purkis will remain as Chief Financial Officer.
VodafoneThree have vowed to resolve patchy 5G coverage across the UK. According to Ofcom’s Connected Nations update in May 2025, approximately 92-95% of premises in England have 5G coverage from at least one MNO; which is 91% in Scotland. However, performance across the Uk varies widely. London reportedly has lower median 5G download speeds compared with Glasgow, which had a median download speed of 185Mbps at the beginning of 2025 (according to research from Ookla). It is these significant disparities which VodafoneThree plan to address.
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