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Tuesday, June 20, 2023

Vodafone and Three plan to merge their UK businesses

New Hutchison/Vodafone network would be biggest UK operator

Vodafone Group plc and CK Hutchison Group Telecom Holdings Limited have agreed to combine their UK telecommunication businesses, respectively Vodafone UK and Three UK. The merger will create a third large network operator to compete with Virgin Media O2 (formed from a merger in 2021) and EE (acquired by BT in 2016).

Vodafone will own 51% of the combined business and CKHGT 49%. The companies say their combined business will invest £11bn in the UK over 10 years to create one of Europe’s most advanced standalone 5G networks, with over 99% population coverage and up to a six-fold increase in average data speeds by 2034.

Margherita Della Valle, Vodafone Group Chief Executive, 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 £11bn network investment plan – driving growth, employment and innovation. For Vodafone, this transaction is a game changer in our home market. This is a vote of confidence in the UK and its ambitions to be a centre for future technology."

The merger of Vodafone and Three, the country's third and fourth largest mobile firms, will be examined by the Competition and Markets Authority (CMA).
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Opinion Articles

Ee-ee-ee, says Everything Everywhere

Mark Bridge writes:

Mobile networks have changed, haven’t they?

Once they were all about delivering service. Coverage. Quality. Price. Now it’s much more about branding.

Everything Everywhere has announced it’s to become EE, an obvious abbreviation that’s been used in mobile industry briefings pretty much since the company was created two years ago. It joins the likes of Kentucky Fried Chicken, Hennes & Mauritz, British Home Stores, Independent Television and Marks & Spencer, although all of these took decades to transition into businesses that were just described by their initials.

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Article rating: 4.0

Last week at The Fonecast: 10th September 2012

No Amazon smartphone, no Nokia tablet

Mark Bridge writes:

It’s a smartphone autumn, as prophesied a few weeks ago by the Carphone Warehouse and many others. The frenzy of big-name announcements led by Samsung at Berlin’s IFA has given way to stand-alone media presentations from Nokia, Motorola and Amazon.

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With instant-pay apps, wallets can stay home

Ted Landphair of voanews.com writes:

A lot of people gave up carrying much cash a long time ago, since they knew ‘plastic’ - a credit or debit card, or a store or public transit ‘smart card’ - would be accepted just about everywhere.

But to hear tech companies tell it, plastic cards will be museum pieces as well before long.

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Last week at The Fonecast: 27th August 2012

4G gets a boost in the UK, Samsung gets a slap in the USA

Mark Bridge writes:

It was a week of dramatic contrasts in the mobile phone industry. We started with Everything Everywhere’s news that 4G service was coming to the UK this year – possibly with a new brand that’ll work alongside Orange and T-Mobile. Meanwhile Three UK seems to have its own plans that involve acquiring some excess 4G spectrum from Everything Everywhere. There was much muttering from Vodafone and O2, although whether this’ll manifest itself as legal action remains to be seen.

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The Hare and the Tortoise: the race for 4G/LTE in the UK

Robin Kent writes:

With this week’s announcement that Everything Everywhere has been given the green light to launch the UK’s first 4G service, competing operators such as Vodafone and O2 are getting hot under the collar. With every day that goes by, these operators lose vital competitiveness as the market creeps away them towards Orange and T-Mobile. This is a real life ‘hare and tortoise’ scenario.

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