Massive telecoms Vodafone U.K. and Three U.K. will merger under a new deal that will create a 5G giant that serves more than 99% of the population in the country with 5G standalone (SA) connectivity by 2030.
Under the deal, Vodafone will own 51% of the combined business with CK Hutchison Group, the owner of Three U.K., owning the remaining 49%.
The deal will allow customers from both telecoms to gain greater 5G coverage and reliability, the merged company said.
The company is already looking ahead with its combined assets and said by the year 2030 it will:
- Invest nearly $14 billion over 10 years on SA 5G networks.
- Install SA 5G in every school and hospital in the U.K.
- Create $6 billion in economic benefits.
- Offer fixed wireless access to 82% of households.
"The merger is great for customers, great for the country and great for competition,” said Margeherita Della Valle, CEO of Vodafone. “It's transformative as it will create a best-in-class — indeed best in Europe –5G network, offering customers a superior experience. As a country, the U.K. will benefit from the creation of a sustainable, strongly competitive third scaled driving growth, employment and innovation.”
The deal is expected to close by the end of 2024 pending regulatory and shareholder approval.
