Rumours are back that Vodafone and 3 (Three UK) will finally tie the knot, and consolidate the UK’s mobile phone networks from four to three. Will Ofcom allow it? Will consumers suffer?
After years of consolidation in the UK’s wireless telecom space, sparked by T-Mobile UK and Orange UK forming to become EE (Everything Everywhere, as it were), followed by Virgin Media and Telefonica’s O2‘s stitch-up, the two names that remain constant have been 3 (Hutchison 3G UK Ltd) and Vodafone (Vodafone Group Plc).
Vodafone logo left; 3 logo right
Now, these two iconic UK mobile brands are, once again, the subject of merger rumours themselves.
Down to just four mobile network operators across the country, UK consumers will now be faced with the prospect of a three-provider market, likely to drive increases in costs for consumers — something that American* and Canadian consumers have long known all too well.
If the merger were to happen, it would reduce the number of mobile network operators in the U.K. from four — Vodafone, Three, EE and Virgin Media O2 — to just three. Counterpoint estimates that Vodafone has about 20% of the U.K. mobile market today and Three has about 10% of the market. If the two were to merge, the combined company would have a 30% stake in the U.K. mobile market, giving it a slight lead over Virgin Media O2 that holds about 28% of the market and EE that holds about 26%.
FierceWireless
Vodafone U.K. and Three merger could still happen, analyst says
Further, analysts predict that business customers will also be on the losing end of a possible Vodafone UK and 3 UK merger:
A merger between the two companies doesn’t feel like a natural marriage, experts say, with pooled resources and expertise offset by less choice and disruption
ITPro.co.uk
“Inevitable” Vodafone and Three merger won’t benefit business customers
More on this developing story, from around the web:
*While it’s true that America technically has had a fourth network, first Sprint, then Dish, neither of their networks was ever truly competitive with those of American providers T-Mobile US, Verizon, or AT&T.*
Defunct UK Phone Brands
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