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Millions of Vodafone and Three customers could soon face massive changes when the two giants merge in 2024.
The old rivals joined forces today as they announced plans to become Britain’s largest mobile operator from next year, serving 28 million customers together.
Although the name of the new company is still a secret, the bosses have already outlined some ambitious goals for the future.
Ultra-fast 5G internet could reach more than 99 per cent of the UK under its wings, increasing average data speeds by ‘up to a sixfold’ by 2034.
But experts told MailOnline they fear this will also come at the expense of Britons, who are already struggling with the skyrocketing cost of living.
Millions of Vodafone and Three customers could soon face massive changes as the two giants merge in 2024
Many phone users saw huge increases in February, with some Virgin Media customers experiencing 25 percent higher phone bills.
Ernest Doku, a telecoms expert at Uswitch.com, told MailOnline: “At a time when millions in the UK are facing the highest mid-contract prices we’ve ever seen, consumers need reassurance that this merger will not result in even higher household bills. .
“The commitment of significant investment in 5G over the next decade is some consolation they will build for a brighter future of connectivity, as long as it is adhered to. What we don’t want to see is customers paying the bill with further price increases.’
If approved by regulators, the 2024 deal will give Vodafone a 51 percent stake in the new company, while Three will take a 49 percent stake.
Talks have been underway since October, as both firms have pledged to invest £11bn in the UK over ten years.
The aim is to create one of ‘Europe’s most advanced stand-alone 5G networks’ with high data speeds in every school and hospital.
Currently there are only four mobile operators in the UK who own the mobile network infrastructure.
These are Vodafone, EE, O2 and Three, which exist alongside smaller networks such as GiffGaff and Sky.
As the landmark merger reduces this to just three, Mr. Doku fears that reduced competition will also contribute to a price increase.
“There are potential consumer benefits and drawbacks in a merger like this,” he added.
“At Uswitch we are committed to offering customers more choice, but with consolidation in the UK market – from four Mobile Network Operators (MNOs) to three – there is always the risk of reduced competition and consequent higher prices.
“They must also commit to ensuring that smaller virtual networks (MVNOs) that rely on Three and Vodafone infrastructure can continue to provide competitive value and service.”
Experts fear this merger will raise costs for Britons amid the cost of living crisis
Despite big claims about ultra-fast internet performance, Dr. Paul Carter, CEO of Global Wireless Solutions, believes the companies are “lagging behind” in this area.
He told MailOnline: ‘In terms of what’s in it for consumers, our latest test results show that Vodafone and Three both lagged behind in terms of internet performance between broadband and mobile services.
“Virgin Media O2 is currently at the forefront of the overall combined consumer connectivity experience, with EE/BT just behind.”
Dr. However, Carter does acknowledge that the merger makes sense if the pair wants to close the gap with competitors.
He continued, “However, it remains to be seen whether it will bring success. Three and Vodafone are bringing together a range of competing mobile assets to drive down costs.
Yet previous mergers in this area have been more complementary in filling technology gaps in wireless services, mobile and broadband.
“Combined providers, as our recent test data shows, benefit because they provide a complete connectivity experience and provide reliable internet services to consumers, whether it’s Wi-Fi or mobile internet connections.”
Vodafone and Three have assured that the greater internet coverage and reliability will come at no extra cost.
The newly merged company will maintain all existing pricing policies of both Vodafone and Three when they merge next year.
This also includes specific low-cost, contract-free, and other flexible offers that they will bring to the table.
Ahmed Essam, Chief Executive of Vodafone UK, said: ‘The combination of Vodafone UK and Three UK will provide customers across the country with more choice and greater value. With scale to invest, we will create a best-in-class 5G network, support the government’s 5G ambitions, drive digital transformation and create jobs.
“Through converged offers we will really challenge the two largest operators and of course we will continue to support the most vulnerable in society with our social tariffs and our commitment to help six million people bridge the digital divide by 2025.”