Vodafone and Three Merger UK: VodafoneThree Explained -- What It Means for Customers

What happened and when

The merger between Vodafone UK and Three UK was first announced in June 2023. The deal faced an extensive Competition and Markets Authority investigation which initially found concerns about the potential impact on competition -- reducing UK mobile networks from four to three. The CMA provisionally concluded in September 2024 that the merger could harm competition.

Following further evidence and negotiations, the CMA reversed its position. In December 2024, the CMA cleared the merger, concluding that VodafoneThree's joint network plan would generate efficiency gains through improved mobile network quality that would outweigh competition concerns -- but only if binding commitments were implemented. Vodafone and Three signed the final binding undertakings in March 2025. The merger completed on 31 May 2025.

VodafoneThree is currently 51% owned by Vodafone Group and 49% owned by CK Hutchison Group Telecom Holdings (CKHGT), Three's parent company. The CMA's approval was the first time it had cleared a transaction reducing UK Mobile Network Operators from four to three based on behavioural remedies -- a significant precedent in UK competition law.

The legally binding Network Commitment

The Network Commitment is the central condition of the CMA's clearance. VodafoneThree committed to invest approximately 11 billion pounds over 8 years in UK mobile network infrastructure. This is described as Europe's largest privately-funded, publicly-regulated infrastructure build. The commitment is legally binding -- not an aspiration.

The Network Commitment covers: upgrading and integrating the combined Vodafone and Three network infrastructure; deploying additional spectrum across more sites; rolling out 5G Standalone (5GSA) to 99% of the UK population; and delivering significant improvements in coverage and performance for customers of both networks.

Ofcom and the CMA jointly oversee the Network Commitment. VodafoneThree must publish an annual report setting out its progress against agreed milestones. Ofcom monitors the network quality improvements; the CMA monitors the consumer tariff protections and MVNO wholesale terms.

What has already changed for customers

MOCN network sharing

The most significant early change is the rollout of Multi-Operator Core Network (MOCN) technology. MOCN allows customers of both Vodafone and Three to automatically connect to whichever of the two networks provides the strongest signal at any given location -- at no extra cost and without any action required by the customer. A Vodafone customer in an area where Three has better coverage will seamlessly use Three's network, and vice versa.

VodafoneThree had 500 MOCN-enabled sites live by August 2025, with a target of 10,000 sites enabled by March 2026. The rollout of MOCN has already improved coverage across 16,500 square kilometres of the UK. Three's download speed experience improved by approximately 8% between Q2 and Q3 2025, according to Opensignal.

Mast upgrades

By early 2026, VodafoneThree had upgraded more than 8,000 masts, with 21 million Vodafone and Three customers benefiting from improved mobile connectivity and capacity. Three also shut down its legacy 3G network, freeing up spectrum for faster and more energy-efficient 4G and 5G services. Partners Ericsson and Nokia are delivering the 5G Standalone rollout.

The 3-year consumer price protections

As a condition of the merger, VodafoneThree agreed to cap selected mobile tariffs and data plans for three years. This directly protects existing Vodafone and Three customers from price rises in the early years of the network integration programme, when the benefits of the merger are still being built out.

The CMA has responsibility for monitoring and enforcing these tariff protections. The 3-year clock began from completion of the merger in May 2025. The price cap protection runs until approximately May 2028. After this period, normal competitive market pricing applies.

The specific tariffs subject to the cap are those that are flagged in VodafoneThree's commitments. If you are an existing Vodafone or Three customer on a price-capped plan and your tariff is increased beyond the cap, this would be a breach of the CMA undertakings. Contact the CMA or Ofcom if you believe this has occurred.

MVNO wholesale protections

VodafoneThree's merger also creates new market power in the MVNO wholesale market. Previously, SMARTY and iD Mobile (both Three MVNOs) and VOXI, Asda Mobile and talkmobile (Vodafone MVNOs) were hosted on separate networks. Now they are all on the same network infrastructure.

To prevent VodafoneThree from exploiting this consolidated position to raise wholesale prices for MVNOs (which would ultimately harm MVNO customers), the CMA required VodafoneThree to offer pre-set wholesale prices and contract terms to MVNO partners for three years. This ensures that SMARTY, iD Mobile, VOXI and other virtual operators can continue to obtain competitive wholesale terms during the network integration period.

What the merger means for UK mobile competition

The UK now has three Mobile Network Operators instead of four: EE (owned by BT Group), VodafoneThree (the merged entity), and Virgin Media O2 (owned jointly by Liberty Global and Telefonica). Ofcom and the CMA believe the denser, better-capitalised VodafoneThree will compete more effectively with EE, increasing competitive pressure on EE to match or improve upon VodafoneThree's network investments.

Virgin Media O2 is responding. It committed approximately 700 million pounds to its own network improvement programme and strengthened its spectrum portfolio, having acquired 78.8 MHz of spectrum formerly belonging to Vodafone. EE is expanding 5G Standalone -- targeting 41 million people covered by Spring 2026.

The combined effect of the merger and competitive responses could significantly improve UK mobile performance from its current position of 33rd out of 38 OECD countries toward Ofcom's proposed 90% good performance benchmark.

What VodafoneThree still needs to do

Despite early progress, significant work remains. Ofcom's June 2026 'Connectivity You Can Count On' consultation identified that the merger alone will not resolve all UK mobile performance challenges. Train connectivity (where even the best network, EE, achieved good performance on only 42% of measured segments), rural coverage gaps, and indoor connectivity in large shared spaces all require additional targeted action beyond network consolidation.

VodafoneThree must continue its MOCN rollout to reach the committed coverage targets, deliver the 5G Standalone rollout to 99% of the population, and maintain the price cap and MVNO wholesale protections through to May 2028. Annual progress reports to Ofcom and the CMA will track delivery against all commitments.

Frequently asked questions

When did the Vodafone and Three merger complete?

The merger between Vodafone UK and Three UK completed on 31 May 2025, creating VodafoneThree. The CMA cleared the merger in December 2024 subject to binding commitments. Vodafone and Three signed the final undertakings in March 2025. VodafoneThree is 51% owned by Vodafone Group and 49% by CK Hutchison.

What is VodafoneThree's £11bn network commitment?

VodafoneThree made a legally binding commitment to invest approximately 11 billion pounds over 8 years in UK mobile network infrastructure as a condition of the CMA's merger clearance. This covers upgrading and integrating the combined network, deploying more spectrum, rolling out 5G Standalone to 99% of the UK population, and improving coverage. Ofcom and the CMA jointly monitor delivery.

Am I affected by the Vodafone Three merger if I am a Three or Vodafone customer?

Yes. If you are on Vodafone or Three, your network has already changed in some ways. MOCN technology now allows your device to automatically connect to whichever of the two networks has stronger signal in your area. Over 8,000 masts have been upgraded. Three's 3G network has been shut down, freeing spectrum for 4G and 5G. Your tariff may also be protected by the 3-year price cap if you were on a qualifying plan at the time of merger.

What are the price caps that apply to Vodafone and Three customers?

As a condition of the CMA merger clearance, VodafoneThree agreed to cap selected mobile tariffs and data plans for three years from completion (May 2025 to approximately May 2028). This prevents the merged company from raising those tariffs above the capped level during the network integration period. The CMA is responsible for monitoring compliance. Contact the CMA if you believe your tariff has been raised beyond the cap.

What about MVNOs like SMARTY and VOXI?

MVNOs that previously used Three's network (SMARTY, iD Mobile) and Vodafone's network (VOXI, Asda Mobile, talkmobile) are now hosted on the same VodafoneThree infrastructure. To prevent VodafoneThree from exploiting this consolidated position, the CMA required it to offer pre-set wholesale prices and contract terms to MVNO partners for three years. MVNO customers should continue to benefit from competitive pricing during this period.

How is the VodafoneThree merger being monitored?

Ofcom and the CMA have joint oversight. Ofcom monitors VodafoneThree's network quality improvements, coverage targets and technical delivery against the Network Commitment. The CMA monitors consumer tariff protections and MVNO wholesale terms. VodafoneThree must publish an annual progress report setting out its performance against agreed milestones for both regulators.

Will the VodafoneThree merger improve my mobile signal?

It is already doing so for some customers. MOCN technology allows Vodafone and Three customers to access the stronger of the two networks' signals at any location. Over 8,000 masts have been upgraded and 16,500 square kilometres of coverage has improved. Three download speeds increased 8% between Q2 and Q3 2025. Further improvements are expected as the full MOCN rollout and 5G Standalone deployment continue through to the merger's 8-year investment programme.

Does VodafoneThree operate under the Vodafone or Three brand?

As of June 2026, VodafoneThree continues to operate separate consumer brands -- Vodafone and Three remain distinct in the market with their own apps, customer service teams and tariffs. The merger is primarily a network infrastructure combination; the consumer-facing brands have not been merged. The underlying network infrastructure is being shared and upgraded under the VodafoneThree entity.