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Did the VodafoneThree merger benefit you? Analysis with their Business Director
Mar 10, 2026
Last year the UK telecoms market changed in a big way when Vodafone and Three completed their £16.5 billion merger, creating the largest mobile network in the country.
The new company, VodafoneThree, now serves around 27 million customers and has promised to invest £11 billion over the next few years to improve mobile coverage and expand 5G across the UK.
While initially, critics argued it would reduce competition by cutting the number of major networks from four to three, regulators approved the merger on the condition that the company invests heavily in upgrading the network.
So how successful have they been, and what are the challenges along the way? City AM's Saskia Koopman sat down with VodafoneThree boss, Nick Gliddon, to find out if your 5G has improved as a result of one of the biggest telecoms mergers in British history.
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0:00
Last year the UK telecoms market changed
0:02
in a big way when Vodafone and Three
0:04
completed their 16.5 billion pound
0:07
merger, creating the largest mobile
0:09
network in the country. The new company,
0:12
Vodafone Three, now serves around 27
0:14
million customers and has promised to
0:16
invest 11 billion pounds over the next
0:19
few years to improve mobile coverage and
0:22
expand 5G across the UK.
0:24
While initially critics argued it would
0:26
reduce competition by cutting the number
0:28
of major networks from four to three,
0:31
regulators approved the merger on the
0:33
condition that the company invest
0:35
heavily in upgrading the network.
0:38
Since then, the company says it has
0:39
upgraded thousands of mobile sites and
0:42
reduced the number of non-spots in the
0:44
UK where people previously struggled to
0:47
get signal.
0:48
So, how much difference is the merger
0:50
actually making to UK connectivity? And
0:53
to Vodafone's share price?
0:56
Well, joining me now is Nick Jeffery.
0:58
Business director of Vodafone Three.
1:00
Nick, thank you so much for for joining
1:02
us today. So, Vodafone Three merger has
1:05
created the the biggest mobile network
1:08
the UK has has ever seen. A year on from
1:10
that merger, what have customers and
1:13
businesses kind of got from that?
1:15
>> Uh well, it was a great introduction
1:16
because you talked about customers, you
1:18
talked about competition, and you talked
1:20
about the country. And I think the the
1:22
merger and the rationale behind the
1:24
merger was was to deliver that.
1:25
We've upgraded over 8,000 sites. Uh
1:28
customers now get a view on the Vodafone
1:30
network or the Three network. You get
1:32
the best opportunity whichever is the
1:34
strongest network. And that's taken out
1:36
about 16 and a half thousand non-spots,
1:38
which is about 10 the geographic area
1:40
about 10 times the size of London.
1:42
>> And if you're a Vodafone or Three
1:44
customer, you know, prior to this
1:46
merger, um
1:47
those tangible improvements, what have
1:49
they kind of from both parties seen in
1:52
terms of network integration?
1:53
>> Yeah, you get I think as a as as a
1:55
customer it on what network you're at.
1:57
So, so if you're a Three customer, you
1:59
get greater coverage and greater
2:00
capacity. If you're a Vodafone customer,
2:03
you get greater speed. So, it's those
2:05
kind of changes that they they've seen.
2:07
But, as I say, because there's been
2:08
8,000
2:09
sites upgraded,
2:11
and we've given the flexibility for
2:13
either subscribers to be on each each
2:15
other's network, that's really made a
2:17
big difference to everybody.
2:19
>> And obviously, you've touched on
2:20
notspots a bit. How big of a problem
2:22
have they been for kind of businesses
2:24
across the country?
2:25
>> I think it's really big, and I think
2:26
it's I think when when I talk, and I do
2:28
lots with small businesses, they they
2:30
talk a lot about their challenges. They
2:32
might have a finance challenge, they
2:33
have a growth challenge, they have a
2:34
cost challenge at the moment. You know,
2:36
particularly in hospitality, it's pretty
2:38
pretty tough.
2:39
But, the foundation of all of this is
2:40
connectivity. If they've got
2:42
connectivity, they think they can be
2:43
more productive, they can engage more
2:45
with their customers, they can be more
2:46
effective and efficient. So, a lot of
2:49
the research that we've done with small
2:51
businesses thinks about how we help them
2:53
be more productive, and that starts with
2:55
connectivity. So, if you give
2:56
connectivity, you become more
2:57
productive. When you become more
2:58
productive, then maybe you can grow your
2:59
business or be more effective with your
3:01
business.
3:02
>> And aside from that kind of productivity
3:03
element, has it stopped people starting
3:06
businesses? Is that a massive part of
3:08
entrepreneurship in terms of
3:09
connectivity?
3:10
>> Yeah, look, I I think I mean, I think
3:11
it's one of the the themes that you have
3:13
at City A.M. about, you know,
3:14
entrepreneurship and how you start
3:15
businesses.
3:16
And the UK's pretty good at the moment.
3:18
There's a lot of people trying to start
3:19
businesses or registering for
3:20
businesses. You
3:21
600, 700,000 a year.
3:24
Um we done the research we had said that
3:26
25% of people, or 25% of the the
3:30
entrepreneurs and the companies we we
3:31
looked at, would not start a business
3:33
unless there was great connectivity.
3:35
And nearly over 60% of of those that
3:38
have started a business, it delays their
3:40
expansion, or it influences where they
3:43
go if there's not great connectivity.
3:45
So, I think there's a there's a real
3:47
opportunity to improve entrepreneurship
3:49
on the back of that digital
3:50
infrastructure.
3:51
>> And do you think that looks a bit
3:52
different whether that's in London or
3:54
whether that's kind of out um where
3:56
connectivity might be harder to to to
3:58
get by?
3:58
>> It's always a bit bit the last week was
4:00
Barcelona at Mobile World Congress. I
4:02
didn't go. [clears throat] I went to
4:03
Ramsgate.
4:04
Cuz there was a the and yeah, all the
4:06
better indeed.
4:07
There was a Seaside Summit and one of
4:09
the things the Seaside Summit focused on
4:11
was connectivity for seaside towns.
4:12
>> Mhm.
4:13
>> And if today if you're in a coastal
4:15
town,
4:16
it's probably the end of the line.
4:19
If the connectivity we're putting in,
4:21
that will make it the destination. So if
4:23
So if you think about small businesses
4:25
in coastal towns, 70% of their trading
4:27
is between April and August.
4:29
>> Oh, wow.
4:30
>> And they have a significant, you know,
4:32
requirement to make that work. And quite
4:34
a lot of research we've done has also
4:36
proved that if we if we can improve that
4:37
connectivity and improve the way that
4:39
either your your payments work or your
4:41
digital or you can use more social to
4:43
trade.
4:43
>> Yeah.
4:44
>> Um there's a there's tens of thousands
4:45
opportunity in each for each business in
4:48
each seaside town.
4:48
>> Mhm.
4:49
>> So think when we think about
4:51
connectivity, that connectivity is is
4:53
not just in London.
4:54
>> Yeah.
4:55
>> It's it's completely around the country.
4:56
Now, for all the people in London, it's
4:58
fine that we improvements in London, but
5:01
you can just see in those environments
5:02
that's a that's a big improvement.
5:04
>> And have you seen a difference with
5:05
people working from home way more? Is
5:07
that something that connectivity become
5:09
becomes a
5:11
bigger part of what they need to just
5:13
work not as starting a company but just
5:14
as an employee?
5:16
>> Yeah, I think so. Look, I think hybrid
5:17
working's here to stay. Um
5:19
certainly we as as as Vodafone 3 as as a
5:21
policy have that for our employees. But
5:24
I see it in in customers.
5:26
Which which kind of does two things. One
5:28
is for businesses and people kind of
5:29
start perhaps businesses at their
5:31
kitchen table or start in a different
5:32
way. But secondly, it creates
5:34
opportunity, right? So if you if you're
5:35
working from home and you want lunch or
5:37
you want food or you want deliveries or
5:39
you want there's a whole raft of
5:40
capability that you can have. Um we also
5:43
do a lot with the logistics companies.
5:46
They deliver on behalf of some of the
5:47
the the large scale, you know, Amazons,
5:50
etc.
5:50
>> Yeah.
5:51
>> All of that element changes the economy,
5:53
changes the productivity,
5:54
>> Mhm.
5:54
>> and makes everything a bit more local.
5:56
Um historically, work was a place you
5:58
traveled to.
5:59
>> Mhm.
6:00
>> I think with with better digital
6:01
connectivity, it unlocks that and it
6:03
makes you more agile, be that as an
6:05
individual, as a worker, or as a
6:06
business.
6:07
>> Mhm.
6:08
>> And do you think the market kind of
6:09
needed a con- consolidation, sorry, um
6:12
to kind of fund the investment needed
6:14
for for 5G coverage just
6:15
>> across the country.
6:16
>> Absolutely. To to build I mean, I've
6:19
I've been away when we were talking
6:20
before, I've been away from the UK for a
6:22
long time. Coming back to the UK, we're
6:23
bottom of the G7 for for 5G speeds.
6:26
We're 25th out of 27 countries in Europe
6:28
for for for mobile connectivity.
6:31
Um to make big step changes, to invest
6:33
11 billion,
6:34
>> We need that kind of
6:35
>> You need scale.
6:36
>> Yeah.
6:36
>> You need scale and you need the ability
6:38
to drive that. Now, I've seen that in
6:39
other countries, makes a big difference.
6:41
And it's one of the reasons why it's
6:42
really exciting to do it.
6:43
>> should we expect further consolidation
6:45
to kind of, you know, rival those kind
6:48
of other countries who are who who are
6:50
seeming ahead of us?
6:51
>> Um I don't think Well, it's a good
6:53
question. If you look at the the most
6:55
efficient markets, typically China, US,
6:58
they typically have three operators.
7:00
Um and if you look at, you know, there's
7:02
a balance between private sector and in
7:05
this case public sector with the CMA,
7:07
the regulation environment they've
7:09
created, I know the European regulators
7:11
are looking a lot at the UK.
7:12
>> Yeah.
7:12
>> So, I think what you're what you're
7:14
trying to do is balance that competitive
7:16
nature with scale.
7:18
>> Mhm.
7:18
>> Um and that's kind of where we've got to
7:20
at this stage.
7:21
>> Mhm.
7:21
And there's been kind of recent news
7:23
about potential kind of broadband
7:25
partnership with Virgin Media O2. How
7:27
important are those kind of partnerships
7:29
for expanding your footprint, their
7:30
footprint, and kind of how does that
7:32
affect the the market for consumers as
7:34
well?
7:34
>> Well, you mentioned it at the start,
7:35
we're now the biggest mobile operator.
7:37
So, so it's great to be popular.
7:39
Uh and the key thing is we're always
7:40
looking at partnerships cuz if those
7:41
partnerships can help us to give better
7:43
customer service or better customer
7:44
experience, it's always something we
7:46
would be considering.
7:47
>> Yeah. So, how much of a problem of
7:49
setting these up is planning regulation,
7:50
and why can't you go faster?
7:53
>> So, planning is a big challenge in the
7:54
UK. I think it's one of the biggest
7:57
areas we need to focus on.
7:59
In certain metropolitan areas, we have
8:01
86% rejection of planning requests. You
8:04
can only build a network if you can
8:05
build a digital infrastructure. So,
8:07
building one of those is really
8:08
important in terms of how far we can go,
8:11
and how quickly we can give better
8:12
coverage for customers and for the UK.
8:14
>> And what's the biggest reason why
8:15
they're rejecting?
8:16
>> I think it it varies. It's not
8:18
consistent. I think the government's
8:19
done quite a lot in terms of asking for
8:21
that execution, but not everyone's
8:23
against that
8:25
against the the guidelines or working to
8:26
those guidelines. And then secondly, I
8:28
think there's there's there's people
8:30
don't realize what the digital
8:32
infrastructure will bring. So, you know,
8:34
more effective health care.
8:35
>> The benefits that they'll
8:36
>> Better education. You know, you you talk
8:38
about virtualization of health care, and
8:39
the government talks a lot about that.
8:41
You can't virtualize it if you can't
8:42
connect. So, I think sometimes we have
8:44
to tell a a good story as an industry
8:47
why by having that infrastructure, what
8:49
are the benefits you get as a citizen or
8:51
a somebody of the in that local
8:52
authority.
8:53
>> And can you talk a bit about 6G? Is that
8:55
something that we can expect in the in
8:57
the near future?
8:58
>> Yeah, I think I mean a bit I you know, I
9:01
I gave up going to MWC cuz I was really
9:03
focused on 5G and delivering that. So,
9:05
I I think there is a challenge that
9:08
the future has got great technical
9:10
capability, but we need to do is is is
9:12
deliver 5G standalone. We need to roll
9:14
the network out, and we need to
9:15
>> Kind of get it right before even
9:17
>> I think so. And and and now that doesn't
9:18
mean to say you you lose track of that,
9:20
cuz the UK was [clears throat] one of
9:20
the most innovative and leading
9:22
countries when mobile telephony was
9:23
first rolled out. So, we need to get
9:25
back to to the standard, and then think
9:27
about how we push it.
9:28
>> Yeah. I've probably got time for one
9:29
more question, but what do you think
9:31
something else that, you know, people
9:33
who now have
9:34
Vodafone and Three are supposed to
9:35
either being, you know, subscribed to
9:37
Vodafone or three, what can they expect
9:39
in the near future as an improvement?
9:40
>> I think firstly uh coverage and network
9:42
capability which gives you that basic.
9:44
Then we're going to layer on um
9:46
a lot of uh product capability and
9:48
you'll start to see some of those
9:49
elements come. And then you'll also
9:50
start to see better customer experience.
9:52
>> Yeah.
9:52
>> And and they're the three anchors that
9:54
we have around, you know, great network,
9:56
>> Mhm.
9:56
>> great uh portfolio and propositions,
9:59
outstanding customer experience.
10:01
>> Great. Thank you so much. Thanks for
10:02
coming on.
10:03
>> Super. Thank you. Appreciate it.
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