Triple merger with Vodafone to create UK’s biggest mobile network: What does it mean for you?

Britain’s biggest mobile operator is set to take a stand next year, as the rival operator scraps Three UK’s £15 billion merger with Vodafone.

The Competition and Markets Authority said Three works with Vodafone It could go ahead by 2025 if both companies spend billions investing in 5G infrastructure.

The merger also sees the cost of some mobile payments locked in for three years – a unique bonus in a mobile landscape that has become increasingly popular. the annual bill increases.

It will see 27 million customers brought together under one roof, and will debut in 2023.

But experts are divided on whether the price will rise or fall, and what it means for mobile phone competition in the UK.

Here’s everything you need to know about how the merger will affect you.

Will Three stay with Vodafone?

Yes, as a special sign. If you are a customer of a company, no changes have been announced to the way your phone contract works.

After three years, Vodafone was allowed to buy the rest of Three, which is now owned by CK Hutchison Group Telecom Holdings.

Does it really make sense?

Not yet, as the CMA has certain requirements it wants firms to meet first.

These include Toru and Vodafone investing billions in 5G infrastructure over eight years and locking in the payment of certain costs for three years. Without institutions, they will cease to function.

Stuart McIntosh, chairman of the inquiry team leading the CMA’s investigation, said: ‘It is important that this merger does not harm competition, so we have spent time considering how it will affect the telecommunications market.

‘Having considered the evidence, and the extensive feedback we have received, we believe that the merger will strengthen competition in the UK mobile sector and should be allowed to go ahead – but only if allowed Vodafone and Toru to implement our policies. .’

At what rates will the payments be closed?

This has yet to be announced, and the details will come in another report from the CMA.

The CMA did not specify which private payment plans would be protected. This information is understood to be included in the full report on the merger, which has not yet been published.

Will the job be done?

In the first half of 2025.

What are the benefits of integration?

The CMA believes that 5G services will be more widespread to the benefit of the Vodafone/Tolu merger.

This is because the integration process can ‘improve the quality of mobile services and bring forward the next generation of 5G connections and services,’ the CMA said.

But some experts think that the merger will increase the costs.

The CMA initially thought the merger would mean higher bills for consumers, before changing its mind.

Rocio Concha, Which one? The director of policy and support, said: ‘The two companies are close competitors at the moment so the merger will be able to reduce the competitive pressure in the market which will increase prices and lower quality for consumers, in the short term.’

However, the expectation that prices will increase was shot down by the CEO of Vodafone, Margherita Della Valle.

He told the BBC Today program that the deal would mean ‘no extra cost from the public purse and no cost to our customers’.

How many phone operators are left?

When the deal ends there will be just four mobile network operators in the UK – Vodafone UK, Three UK, BTEE and Virgin Media O2.

A telecommunications operator owns and operates a network through which cell phones can communicate.

Many other companies rent part of this network to provide their own services, such as Giffgaff, Tesco Mobile, Smarty and others. These firms are known as ‘mobile virtual network operators’ (MVNOs) and 18 of them, seven of which use Vodafone and Toru’s services.

What if my phone company runs on the Vodafone/Three network?

Seven mobile phone companies are MVNOs using Vodafone or Three networks.

These include Asda Mobile, iD Mobile, Lebara, Smarty, Superdrug Mobile, Talkmobile and Voxi.

Consumers of these firms should not see a price increase for three years – at least, not the price increases associated with the merger.

That’s because the CMA said these firms will receive compensation and contract terms for three years as part of the merger process.