Vodafone-Three Merger: What you need to know

The Competition and Markets Authority (CMA) has approved a merger between mobile networks Vodafone and Three. The two companies are expected to formally become one during the first half of 2025, meaning the big four networks will become the big three, incorporating EE and O2. 

Read on to find out why this is happening, how it will impact phone signal, prices and the smaller networks that rely on Vodafone and Three’s infrastructure.

See where Vodafone and Three rank in our survey of the Best and worst UK mobile networks. 

Why are Vodafone and Three merging?

Vodafone and Three claim that a joint network will create more competition in the mobile market and better network infrastructure through increased investment.

Currently, as individual companies, Vodafone and Three have the least customers of the big four, but combined they would have around 27 million mobile customers, making them the UK's biggest mobile network. They argue this makes them better able to compete with O2 and EE, which have around 23 million and 21 million customers respectively. 

Vodafone claims the move will result in wider coverage, faster speeds and better quality connections across the UK.There is an opportunity for this to be true, but it will need oversight from the CMA and telecoms regulator Ofcom to ensure that the promising-sounding future becomes reality, and that competition doesn’t actually decrease, while prices increase. 

The CMA acknowledged this, after an independent inquiry decided that a merger is likely to boost competition. However, for it to go ahead Vodafone and Three must implement a range of measures regarding the network, pricing caps and agreements with smaller providers.

Rocio Concha, Which? Director of Policy and Advocacy, said of the announcement: 'A good, affordable mobile connection is essential to daily life and the Vodafone and Three merger will have a significant impact on the telecoms market. The two companies are currently close competitors so the merger is likely to reduce competitive pressure in the market which could lead to higher prices and lower quality for consumers, at least in the short term.

'The CMA has taken a gamble with the package of remedies it has settled on. For this merger to work for consumers, the CMA and Ofcom must rigorously monitor whether the merged company sticks to its commitments and be prepared to act decisively if it does not.'

Compare mobile phone and Sim-only deals today

Get a great deal on a mobile phone contract, or browse Sim-only deals starting from around just £5 a month

See how much you could save

How could the Vodafone-Three merger impact my 4G and 5G signal?

For the merger to be approved by the CMA, Vodafone and Three had to agree to a joint network plan for the future of their infrastructure. The plan details network upgrades, integration and improvements that Vodafone and Three will make to their combined network across the UK in the next eight years.

A key commitment is investing £11 billion in the new joint network, aiming to improve signal and data speeds for customers across the country, enhance reliability and capacity for handling ever-increasing demands for data. 

The expectation is that demand for data will continue to grow due to greater use of new technologies such as artificial intelligence, so the network needs to keep improving to meet this.

It may take some time for the changes to be noticeable, and signal and data speeds issues usually vary considerably in different parts of the country, a problem faced by all networks.

Find out more in our article: what is 5G and where can I get 5G in the UK?

Will phone and Sim-only prices increase?

One concern around the merger is that it could lead to higher prices for customers. To address this, the CMA requires some mobile tariffs and data plans to be price capped for three years, to protect customers from price rises at the start of the new joint network.

Alongside Vodafone and Three contracts, this is likely to also include some deals offered by smaller networks owned by the companies, such as Voxi and Smarty. 

However, it’s unclear at the moment exactly which tariffs, and how many, will be protected in this way. What will happen after the three year period is also an unknown element. 

Having an eSim instead of a physical Sim card could save you time and money, find out more in our guide to mobile phone eSims: what is an eSim and how does it work?

How does this impact smaller networks?

Lots of smaller mobile providers rely on the network infrastructure of the big four to offer services to their customers. Smarty, iD Mobile, Lebara, Asda Mobile, Talkmobile and Voxi are all providers that currently run on the Three or Vodafone network.

After the merger, these providers would only have three options to choose from, potentially raising their costs and impacting service.

That's part of the reason for the requirement to offer pre-set prices and contract terms to the smaller networks, for three years, while the new network is established. 

Fortunately, the UK mobile network market is already competitive, and there are a range of cheaper providers that use the EE and O2 networks, such as 1p Mobile, Sky Mobile and Giffgaff, with Sim-only deals starting from £6 and useful additional perks such as inclusive EU roaming.

Read our guide on five ways to save while roaming to see how picking the right network could help you cut your bills.

What should Vodafone and Three customers do now?

At the moment, there is nothing for Vodafone and Three customers to do. The networks will continue to operate as two companies for now, and expect to officially come together as one during the first half of 2025. 

Pay attention to any communications from the networks as they are likely to be in touch.

News, deals and stuff the manuals don't tell you. Sign up for our Tech newsletter, it's free monthly