Vodafone and Three are among the biggest operators in the UK market. They hold the third and fourth positions as per their market share in the region. On the other hand, EE holds the first rank. Whereas the second rank is secured by O2. Reportedly, the two companies have declared that will merge in the near future. This collaboration will give rise to the biggest operator in the UK. Such a strategy will even lower the competition since the four big competitors will then be left to just three.
CK Hutchinson Group Telecom Holdings is the holder of the Three brand. It has a share of 49% of the combined business. Where Vodafone holds a 51% share of the combined business. Whenever such ventures emerge, wonderful offers for consumers also surface. Both companies have released a joint statement to the press. It states that the UK consumers of both services will experience a better network with great coverage with no added costs. There will be no increase in annual prices and social tariffs. The consumers will have access to contract-free offers.
Offerings of MergeCo
As per the information, the joint venture will be named MergeCo. It is anticipated to target 99% of the UK population along with its 5G network. The company has a vision of providing six times more efficient average data speeds by 2034. Over the period of ten years, around £11 billion will be invested by MergeCo in the UK. Notably, this merger will help generate up to £5 billion per year in the form of economic values by 2030. Every school and hospital will have access to a 5G network by 2030.
Furthermore, around 82% of households will have access to fixed wireless access by 2030. The CEO position of MergeCo will be occupied by the current Vodafone UK CEO Ahmed Essam. Whereas current Three UK CFO Darren Purkis will serve the role of MergeCo CFO. It is anticipated that the deal will close by the end of 2024. Till then it has to acquire regulatory and shareholder approvals.
Brian is the news author at Research Snipers which mainly covers Technology News, Microsoft News, Google News, Facebook, Apple, Huawei, Xiaomi, and other tech news.