5 December 2024
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CMA
APPROVES MERGER OF
VODAFONE AND THREE IN THE UK
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Merger creates a new force in UK mobile,
unleashing more competition and investment to transform the UK
telecoms landscape
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Committed £11 billion investment programme to
build the UK's biggest and best network
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New advanced 5G network will bring vastly superior
network quality to tens of millions of consumers and businesses up
and down the country
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Investment will propel the UK's telecoms
infrastructure to the forefront of European connectivity
Vodafone and Three welcome today's
announcement by the UK's Competition and Markets Authority ("CMA").
After 18 months of detailed and thorough analysis, the CMA has
approved the combination of Vodafone and Three in the
UK.
The merger is a once-in-a-generation
opportunity to transform the UK's digital infrastructure. From the
outset, Margherita Della Valle, Vodafone Group's CEO, described the
combination as being, "great for customers, great for competition
and great for the country." Upon completion, this promise can be
turned into reality.
Vodafone and Three have committed to
invest £11 billion to create one of Europe's most advanced 5G
networks. The new network will reach 99% of the population and
benefit over 50 million customers1, through
significantly better quality, greater reliability and enhanced
capacity for handling ever-increasing data demand. This demand is
set to accelerate further with more widespread adoption of new
technology, such as AI.
Great network connectivity is
critical to so many elements of our daily life and is central to
the UK's economic growth ambitions. Businesses large and small
depend on high-quality connectivity and advanced 5G is also crucial
for the growth of the UK's science and technology sectors, as well
as improving public services and narrowing the digital
divide.
The combination creates a new,
stronger player in UK mobile, with the scale to drive more intense
competition across both the retail and wholesale
markets.
The £11 billion network investment
will require no public funding and, as highlighted by the CMA, will
"boost competition between the mobile network operators in the long
term, benefiting millions of people who rely on mobile
services."
Margherita Della Valle said: "Today's decision creates a new force in the UK's telecoms
market and unlocks the investment needed to build the network
infrastructure the country deserves. Consumers and businesses will
enjoy wider coverage, faster speeds and better-quality connections
across the UK, as we build the biggest and best network in our home
market. Today's approval releases the handbrake on the UK's
telecoms industry, and the increased investment will power the UK
to the forefront of European telecommunications."
Canning Fok, Deputy Chairman of CK Hutchison and Chairman of
CK Hutchison Group Telecom Holdings, said:
"We have been operating telecoms businesses in the
UK for over three decades and Three UK for the past two. We have
invested in the people and the infrastructure, helping to bring the
benefits of mobile connectivity to UK businesses and consumers.
When Three and Vodafone are combined, CK Hutchison will fully
support the merged business in implementing its network investment
plan, the cornerstone of today's approval by the CMA, transforming
the UK's digital infrastructure and ensuring customers across the
country benefit from world-beating network quality."
Vodafone and Three will study the
Final Report in detail and will continue to engage with the CMA as
they put in place the final undertakings.
The merger is expected to formally
complete during the first half of 2025. Vodafone will own 51% of
the equity and, after three years following completion and subject
to certain conditions, Vodafone may acquire Hutchison's 49% stake
via a Put and Call option.
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1.
The merger will extend the network quality
benefits well beyond the merged company's own customer base to
VMO2's customers - please see full announcement
here.
About Vodafone
Vodafone is a leading European and
African telecoms company. We provide mobile and fixed services to
over 330 million customers in 15 countries (excludes Italy which is
held as a discontinued operation under Vodafone Group), partner
with mobile networks in 45 more and have one of the world's largest
IoT platforms. In Africa, our financial technology businesses serve
almost 79 million customers across seven countries - managing more
transactions than any other provider.
Our purpose is to connect for a
better future by using technology to improve lives, businesses and
help progress inclusive sustainable societies. We are committed to
reducing our environmental impact to reach net zero emissions by
2040.
For more information, please
visit www.vodafone.com follow us on X at @VodafoneGroup or connect with us on
LinkedIn at
www.linkedin.com/company/vodafone.
About Three
Three launched in 2003 as the UK's
first 3G only network. Today Three is a connectivity company that
connects people to people, people to things and things to things
and has 10.9 million customers.
Our network today covers 99% of the
UK population and we carry 34% of the UK's mobile data
traffic.
Three launched 5G in August 2019,
and has been recognised by Ookla as having the UK's fastest 5G
network.
Three UK is a proud partner of
Samaritans, where it will use the strength of its network and
technology to connect 1 million people to emotional
support.
Three UK is part of the CK Hutchison
Holdings Ltd group of companies which has mobile operations in 11
countries. We employ more than 4,800 people across our offices in
Reading and Glasgow and our 297 retail stores.