30 June 2023 , 08:16
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There’s a massive shake-up planned at Vodafone and Three following the announcement of a huge £15bn merger between the two UK mobile networks earlier this summer.
If you’re one of the millions of customers with a pay monthly contract with either of these popular brands, the change could have a serious impact on your monthly bills.
The £15bn merger will will create the UK’s largest mobile phone operator becoming bigger than both EE and even the mega-merged Virgin Media O2.
Vodafone will own 51% of the combined business and Three will own the remaining 49%, with the joint company expected to have around 27 million customers.
Margherita Della Valle, Vodafone Group Chief Executive, described the merger of Vodafone UK and Three UK as being “great for customers, great for the country and great for competition."
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While there is no doubt it will mean massive changes to the mobile landscape, what does it mean for existing customers of both networks?
What this could mean for you?
This will mean smart consumers will want to stay up to date on all the tariffs and offers from their respective networks and log into their Vodafone and Three accounts to see how this merger will affect them and their mobile phone bills.
Vodafone and Three have also stated there will be "certain flexible, contract-free offers with no annual price increases, and social tariffs." but how long they stick to this will depend on a number of factors.
It's likely that Vodafone and Three will put together some special offers to existing customers on their networks like Virgin O2 has offered Virgins broadband to O2 customers and O2 deals to Virgin customers.
Savvy consumers might want to consider cancelling their contracts and keeping their eyes open for deals from their networks especially as EE, Virgin Media O2 and other telecommunication companies try to tempt shoppers away from the combined entity with very attractive deals and savings.
The best deal for Vodafone customers right now
Vodafone's offerings include Samsung's latest handset the S23+ for £36 per month with an upfront cost of £49 on a 36-month Phone Plan with a 24-month 8GB Airtime Plan and it includes 6 months of Disney+ for free.
The Google Pixel 7 will cost only £27 per month with a £29 upfront cost On a 36-month Phone Plan with a 24-month 8GB Airtime Plan.
The best deals for Three customers right now
Three customers also have some noteworthy deals including iPhone 14 128GB for £22 per month and an upfront cost of £35.
Meanwhile the Google Pixel 7a, their latest affordable phone with all the features of its bigger brothers for only £10 per month and no upfront cost, but hurry as it's very popular and stocks are low.
Want to switch? Best deals from rival UK networks
However don't only look to Three and Vodafone, with this merger we can expect the other networks to want to offer some competitive deals.
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New kid on the block Nothing's Phone (1) 128GB is available for only £32.81 per month including Unlimited minutes and texts and 5Gb of Data with only a £10 upfront cost, and it comes with up to 3 months of free Apple Music and 3 months of an Extra of your choice.
EE is offering the Samsung Galaxy Z Flip4 for £58 per month reduced from £78 with Unlimited data, and great speeds of up to 100Mbps.
Why the merger is good?
Three and Vodafone customers will see increased coverage of their combined networks at no extra cost as they will essentially share their cellular networks.
Furthermore, this integration is expected to enable the two companies to effectively increase their network capacity, resulting in a significant improvement in reliability, particularly in densely populated areas such as events like concerts and football stadiums where signal strength is typically inconsistent.
The new company will invest £11 billion in their as part of the network investment plan to drive growth, employment and innovation.
The combined 5G standalone network will reach more than 99% of the UK population delivering customers up to a six-fold increase in average data speeds by 2034, meaning most UK phones will receive a significant boost allowing for faster download speeds and streaming.
Why the merger is bad?
Having a smaller group of network operators to choose from will make them less competitive and ultimately offer the customer fewer choices, much like AT&T and Verizon in America. However, Vodafone UK Chief Executive has claimed the exact opposite stating
“The combination of Vodafone UK and Three UK will bring more choice and better value to customers nationwide. With scale to invest, we will create a best-in-class 5G network, supporting the Government’s 5G ambitions, drive digital transformation and create jobs.
However, with millions of UK households struggling with the cost of living, increasing bills and high mortgage rates there are serious concerns that this union could lead to it increased prices on bills.
According to Unite, Three and Vodafone have both already raised their prices above inflation but Ahmed Essam has also responded to this question saying
“Through converged offers we will really challenge the two largest operators and, of course, we will continue to support the most vulnerable in society with our social tariffs and our commitment to help six million people cross the digital divide by 2025.”
However, MPs and trade bodies have expressed over Three’s ties to China and the security of UK Data and National Security as the brand was founded and is headquartered in Hong Kong.
What this could mean for you?
This will mean smart consumers will want to stay up to date on all the tariffs and offers from their respective networks and log into their Vodafone and Three accounts to see how this merger will affect them and their mobile phone bills.
Vodafone and Three have also stated there will be "certain flexible, contract-free offers with no annual price increases, and social tariffs." but how long they stick to this will depend on a number of factors.
It's likely that Vodafone and Three will put together some special offers to existing customers on their networks like Virgin O2 has offered Virgins broadband to O2 customers and O2 deals to Virgin customers.
Savvy consumers might want to consider cancelling their contracts and keeping their eyes open for deals from their networks especially as EE, Virgin Media O2 and other telecommunication companies try to tempt shoppers away from the combined entity with very attractive deals and savings.