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Vodafone and Three merger: What the huge deal actually means for you
Vodafone and Three merger: What the huge deal actually means for you
A new deal will bring the “biggest shake-up in the UK mobile market for over a decade” – and could have significant consequences for anyone who uses a phone in the country. Vodafone and Three will merge as part of a deal that will see the two companies merge to make one of Europe’s biggest mobile operators. That will leave customers of those companies – and other operators in the UK – with a network operator significantly different from the one before the merger happened. But will it benefit those customers, or harm them? Here’s everything you need to know about how the possible deal might shakeup the mobile market. What is happening? Vodafone and Three – both relatively small phone networks in the UK – will merge together, with Vodafone owning 51 per cent of the combined business. It’s not clear yet what the new company will be called. It’s also not actually clear whether the deal will actually go through. Regulators still have to approve it, which is not guaranteed. It will affect the companies themselves, which will be re-organised around the new merger, as well as employees who may now fear job cuts. But it will also affect customers and the rest of the country. The deal is expected to be completed before the end of 2024, the companies said. “This long-awaited mega merger represents the biggest shake-up in the UK mobile market for over a decade,” said Kester Mann, director of consumer and connectivity at CCS Insight. What does it mean for customers? The companies are looking to position the deal as great for its customers. It says that it will immediately lead to a “better network experience with greater coverage and reliability at no extra cost, including through certain flexible, contract-free offers with no annual price increases, and social tariffs”. Over the long term, it is not clear how the company intends to bring those customers together. When EE and T-Mobile merged into EE, for instance, the two customer groups initially stayed separate and then gradually became integrated. What does it mean for people who aren’t Three or Vodafone customers? Those behind the merger argue that it will help everyone else, too. Margherita Della Valle, Vodafone’s chief executive, said that it was “great for customers, great for the country and great for competition”. The “country” part of the statement is intended to point to the £11 billion investment that the newly merged company has promised for the UK, which it says will help “create one of Europe’s most advanced standalone 5G networks”. That new network will help provide billions in economic benefit, it argues. And the “competition” part comes from the argument that the mobile market will become more competitive, with another large operator in it. In theory, that could lead to better prices and deals for everyone – though there is of course no guarantee of that. Will prices go up for existing or new customers? It’s difficult to know this far out. Bigger companies have more power, which they can use to try and drive prices higher – but they also have more scale, which they can potentially use to be more efficient and reduce prices. Both companies have recently increased their prices significantly, even above inflation, which might be a clue to how they intend to behave in the future. But they may argue that the deal would allow them to avoid similar rises in the future. This will be the question that regulators grapple with as they probe whether the deal should go ahead. If they cannot be convinced that the merger will lead to better conditions for customers, then they will look to stop it. Will the deal go ahead? There is still a good chance that regulators will stop the deal from going ahead. They did the same when Three attempted to take over O2 in 2016, citing the risk that the deal would lead to higher prices. “This will be a hard sale given that both companies have been outperforming the market for the last year or so,” said Paolo Pescatore, from PP Foresight. “Let’s see if the authorities have a change of heart. Both parties need to demonstrate that this is genuinely in the interest of UK plc, the economy, and consumers for it to have a chance of getting over the line.” Read More Battery breakthrough ‘offers 1,500 kilometre range from just 10 minutes of charging’ EU makes major statement on the future of Google Reddit’s blackout protest is set to continue indefinitely Battery breakthrough ‘offers 1,500 kilometre range from just 10 minutes of charging’ EU makes major statement on the future of Google Reddit’s blackout protest is set to continue indefinitely
1970-01-01 08:00
EU lawmakers approve legislation to make batteries greener
EU lawmakers approve legislation to make batteries greener
BRUSSELS The EU parliament approved on Wednesday new rules to make batteries more durable, more sustainable, and better
1970-01-01 08:00
Charlie Puth revisits that time he and Megan Trainor shared a kiss
Charlie Puth revisits that time he and Megan Trainor shared a kiss
Was "Marvin Gaye" playing at the time is the question.
1970-01-01 08:00
Ukraine war: Mystery over Chechen commander reported wounded in Ukraine
Ukraine war: Mystery over Chechen commander reported wounded in Ukraine
Chechen commander and MP Adam Delimkhanov's whereabouts are unknown, but colleagues say he is alive.
1970-01-01 08:00
Baby Placed in Stanley Cup
Baby Placed in Stanley Cup
William Karlsson's baby got to hang out inside the Stanley Cup.
1970-01-01 08:00
Frenkie de Jong reveals why 'restless' Man Utd transfer saga 'wasn't stressful'
Frenkie de Jong reveals why 'restless' Man Utd transfer saga 'wasn't stressful'
Barcelona midfielder Frenkie de Jong has discussed last year's transfer saga which saw him linked with Manchester United.
1970-01-01 08:00
Hong Kong protest anthem's online presence fades as govt seeks total ban
Hong Kong protest anthem's online presence fades as govt seeks total ban
By Jessie Pang HONG KONG (Reuters) -Various versions of the pro-democracy protest anthem "Glory to Hong Kong" were unavailable on
1970-01-01 08:00
Codelco CEO steps down as Chile copper giant faces 'complexities'
Codelco CEO steps down as Chile copper giant faces 'complexities'
By Fabian Cambero SANTIAGO (Reuters) -The CEO of Chile's state-owned mining giant Codelco is stepping down after only a year
1970-01-01 08:00
Ukraine war: At least three killed in Odesa strikes, Kyiv says
Ukraine war: At least three killed in Odesa strikes, Kyiv says
Officials says a missile fired by a Russian warship in the Black Sea hit a food warehouse in the city.
1970-01-01 08:00
Billionaire Niel, Partners Make €1.1 Billion Approach for French Grocer Casino
Billionaire Niel, Partners Make €1.1 Billion Approach for French Grocer Casino
Billionaire Xavier Niel and two partners approached ailing French grocer Casino Guichard-Perrachon SA with a €1.1 billion ($1.19
1970-01-01 08:00
Pennsylvania officials to announce plans for rebuilding section of Interstate 95 following collapse
Pennsylvania officials to announce plans for rebuilding section of Interstate 95 following collapse
Pennsylvania Gov. Josh Shapiro and state transportation officials will announce plans Wednesday for the rebuilding of a portion of Interstate 95 in Philadelphia that collapsed after a tanker truck caught fire Sunday, impacting traffic along the major East Coast artery.
1970-01-01 08:00
EU officials accuse Google of antitrust violations in its ad tech business
EU officials accuse Google of antitrust violations in its ad tech business
Google's advertising business should be broken up, European Union officials said Wednesday, alleging that the tech giant's involvement in multiple parts of the digital advertising supply chain creates "inherent conflicts of interest" that risk harming competition.
1970-01-01 08:00
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