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Vodafone–Three Merger Finalized Amid Antitrust Scrutiny and £11bn Network Commitments

By  |  June 3, 2025

Vodafone has finalized its merger with Three UK, creating a new mobile giant in the British telecoms market and reducing the number of major network providers from four to three. The newly formed company, named VodafoneThree, kicks off its operations with an immediate capital investment of £1.3 billion to upgrade and integrate network infrastructure.

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    According to Silicon UK, the merged entity is majority-owned by Vodafone Group, holding a 51% stake, while CK Hutchison—the former sole owner of Three UK—retains the remaining 49%. The companies had first announced the merger in 2023, prompting significant debate over potential consequences for competition and consumer pricing.

    To address regulatory concerns, Vodafone committed to a broader £11 billion investment over the next decade, focused on accelerating 5G rollout and enhancing overall network performance. This long-term pledge was a key factor in securing the green light from the UK’s Competition and Markets Authority (CMA), which initially flagged the deal as potentially harmful to consumers and smaller network providers.

    Read more: Vodafone CEO Praises UK Competition Authority for Modern Approach to Mergers

    Per Silicon UK, the CMA warned that the merger could lead to “millions of customers having to pay more” and could undermine the position of mobile virtual network operators (MVNOs) such as Lebara, Lyca, and iD Mobile. The regulator eventually approved the merger in late 2024 after VodafoneThree agreed to a series of binding commitments, including maintaining current pricing structures and data plans for at least three years, and offering fair access terms to MVNOs.

    In its first year, VodafoneThree will focus on implementing multi-operator core network (MOCN) functionality, enabling customers of both networks to access shared infrastructure, thus improving coverage and service reliability.

    While unions have raised concerns about potential job losses, with estimates suggesting up to 1,600 roles could be at risk, Vodafone has contested that claim and said the merger will support employment growth through expanded operations.

    Vodafone Group CEO Margherita Della Valle has described the merger as a transformational move for the UK’s digital infrastructure, expressing confidence that the combined entity will deliver improved network quality and broader coverage across the country.

    Source: Silicon