Vodafone and Three to merge creating mobile giant with 27million customers – what it means for your bill

TWO major mobile operators have announced they are to merge to form one of the UK's largest cellular networks.

Mobile phone firms Vodafone and Three owner CK Hutchison Group have agreed to merge their UK networks in a deal to create a European 5G giant.

Vodafone currently has 17million customers across the UK and Three provides cellular services to a further 10million accounts.

Both companies will remain separate until the merger gets the green light from regulators at a later date.

If approved, the tie-up will create a major rival to EE, which is owned by the BT Group, and currently serves over 30million UK customers with mobile services.

Margherita Della Valle, chief executive of Vodafone Group, said: "The merger is great for customers, great for the country and great for competition.

"It’s transformative as it will create a best-in-class – indeed best-in-Europe – 5G network, offering customers a superior experience.

"As a country, the UK will benefit from the creation of a sustainable, strongly competitive third scaled operator – with a clear £11 billion network investment plan – driving growth, employment and innovation."

Both firms have pressed on the need to merge to help improve the roll-out of superfast 5G connections.

Canning Fok, group co-managing director of CK Hutchison, said: "Three UK and Vodafone UK currently lack the necessary scale on their own to earn their cost of capital.

"This has long been a challenge for Three UK’s ability to invest and compete.

"Together, we will have the scale needed to deliver a best-in-class 5G network for the UK, transforming mobile services for our customers and opening up new opportunities for businesses across the length and breadth of the UK."

It comes after Virgin Media and O2 agreed to merge as part of a £31billion deal back in 2021.

The deal brought together O2's 36.6million customers on its mobile networks with Virgin's 5.7million cable users and 3.4million mobile subcribers.

What does the merger mean for customers?

As the merger isn't set to go through until it receives regulatory approval, it won't have a direct impact on customers until then.

It could mean lower prices for customers, thanks to the cost savings the two firms can make by merging.

Bosses behind the merger have also said it will speed up the rollout of 5G networks to Brits across the country.

The tie-up means the firms will be better placed to compete with rivals, which should mean better value products and additional services and products.

But consumer champion Which? has called on the UK's competition watchdog to assess the merger between Vodafone and Three, arguing it will raise prices and lower service quality for consumers.

Rocio Concha, Which?'s director of policy and advocacy, said: "A good mobile connection is essential to everyday modern life and this merger between Vodafone and Three will have a significant impact on the telecoms market.

"There are currently four mobile network operators in the UK – EE, O2, Three and Vodafone – which smaller mobile providers then piggyback off.

"Reducing the number of network providers from four to three risks reducing the choices available to consumers, raising prices and lowering the quality of services available.

"The CMA (Competition and Markets Authority) needs to conduct a thorough assessment to determine whether this merger will be harmful to consumers."

A number of smaller mobile firms run off the Vodafone and Three networks.

The following networks run off Vodafone's cellular services:

• Asda Mobile
• Lebara Mobile
• Talkmobile
• Voxi

The following networks run off Three's cellular services:

• FreedomPop
• iD Mobile
• Smarty
• Superdrug Mobile

It's unclear how these customers will be affected by the merger deal if it's approved.