VodafoneThree sets big goals for 5G standalone and broadband services

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The newly merged operator has rival BT (EE) firmly in its sights, dubbing itself ‘The Nation’s Network’

Last week, after nearly three years of regulatory scrutiny, the £16.5 billion merger of Vodafone UK and Three finally closed. The move creates the UK’s largest mobile operator, with 27 million customers, and reduces the number of national operators from four to three.

But what does this all mean for customers?

Quite a lot, as VodafoneThree’s CEO Max Taylor was quick to emphasise at a launch event in London yesterday.

“The industry has lost pace and purpose. Meanwhile, our country has never needed this more. To help fix the digital divide and to support UK PLC with the digital transformation needed to drive productivity and growth. This is the moment when everything changes,” he said.

Within the next two weeks, existing customers on the Three network are expected to begin feeling the impact of the merged company’s newly combined spectrum holdings, resulting in ‘reliable speeds in more places, with an improvement in 4G data speed of up to 20%’.

Within months, customers on both networks will be able to begin roaming between the two at no additional cost, representing the first step in the networks’ long-term integration. By the end of the year, this process is expected to remove roughly 16,500 sq/km of ‘not spots’ for customers.

Customers of rival networks will have the opportunity to test out VodafoneThree’s improved network, with the company offering a free seven day ‘try before you buy’ eSIM to customers in London, Liverpool, Sheffield, and Belfast. Trial availability will be expanded to new locations in future.

Finally, by next year, VodafoneThree will commercially launch direct-to-device satellite connectivity via their partnership with AST SpaceMobile. This will allow customers to access mobile services anywhere in the country, essentially eliminating not spots entirely.

“[This service will] complement the existing network build, eliminating coverage gaps in places that otherwise couldn’t be reached, leaving no one behind,” said Taylor.

Taylor reiterated the company’s pledge to invest £11 billion to expand and improve its mobile network, ultimately aiming to provide 5G standalone coverage of 99.95% by 2034. Roughly £1.3 billion of this total is expected to be invested this year.

“We will connect every nation, every community, in every corner of the UK. We will build the UK’s best 5G network with an unprecedented £11bn privately funded infrastructure project, laying the digital foundation for our country’s growth ambitions. Benefits for our 27 million mobile customers will start within months, with access to roam across both networks at no extra cost. From big cities to small towns, and everywhere in between, our mission is to build the UK’s best network,” said Taylor in a press release.

“We’re the only operator with a plan like this,” he added on stage at the launch event.

Broadband drive

In addition to dominating the UK’s mobile market in terms of coverage and 5G, Taylor highlighted the opportunities the enhanced network will create for Vodafone’s broadband business.

Vodafone’s ISP business currently has around 2 million subscribers, a market share of roughly 6%. By leveraging Three’s substantial fixed wireless access (FWA) business and cross selling aggressively, Taylor says this figure could be more than doubled to 4.3 million over the next eight years.

To support this goal, VodafoneThree also announced a new wholesale agreement with London-based altnet Community Fibre, making Vodafone’s broadband service available to roughly 1.3 million additional customers.

When combined with Three’s FWA availability, VodafoneThree’s broadband offerings are now available to over 22.5 million homes across the country.

Supporting the growth of the UK economy

Throughout the regulatory approval process with the Competition and Markets Authority, Vodafone and Three had continued to emphasise how beneficial the merger would be for the UK economy. At the launch this week, this messaging was once again front and centre – even including a video message of praise from UK Chancellor Rachel Reeves.

“I’m delighted that that this huge investment is being made in mobile phone network infrastructure, better connecting people with families, loved ones and work by providing stronger, more widespread 5G coverage. Our Spending Review is all about growing our economy and attracting private investment to deliver on our Plan for Change, and it’s fantastic that VodafoneThree have chosen to join us on our mission of national renewal,” she said.

The merger will reportedly create up to 13,000 new jobs across the UK, including the creation of two new contact centres in Belfast and Sheffield, creating 400 new permanent positions. In contrast, Taylor acknowledged that some retail stores would likely close as a result of the merger but insisted that are “no plans for retail redundancies”.

How is the UK telecoms landscape evolving? Join the dicussion at Connected Britain, 24-25 September in London. Tickets available here  

Also in the news:
SWR deploys Europe’s first ’Rail-5G’ Wi-Fi  
BT accelerates fibre rollout amid cost cuts
AT&T agrees $5.75 billion deal for Lumen’s consumer fibre asset

Author: Ernestro Casas -

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