Two of the U.K.’s four mobile phone operators agreed Wednesday to merge their businesses to capitalize on the rollout of next-generation 5G wireless technology in the country.
The tie-up of Vodafone U.K. and Three U.K., which is owned by Hong Kong’s CK Hutchison, would create Britain’s biggest mobile phone player, with a combined 27 million customers. But the deal is likely to face stiff regulatory scrutiny because it will reduce the number of mobile networks down to three.
Vodafone will account for 51% of the merged firm, with CK Hutchison owning the rest. Vodafone will have an option to buy out CK Hutchison’s stake after three years should the combined entity have a value of at least 16.5 billion pounds ($21 billion).
The groups said the merger will help them compete with their rivals on 5G technology, which provides much faster connectivity and greater capacity that will potentially allow thousands of devices to be connected at the same time within a relatively small area.
Vodafone CEO Margherita Della Valle described the deal as a “game-changer” for the company’s home market.
“It’s transformative as it will create a best-in-class — indeed best-in-Europe — 5G network, offering customers a superior experience,” she said.
Canning Fok, group co-managing director of C.K. Hutchison, said Three U.K. and Vodafone U.K. individually lack the necessary financial muscle for what’s needed.
“This has long been a challenge for Three U.K.’s ability to invest and compete,” he said.
The companies said they are aiming to complete the deal by the end of 2024.
If it gets the go-ahead from regulators, Vodafone U.K. boss Ahmed Essam will be chief executive, with Three U.K. chief financial officer Darren Purkis taking on that role at the merged company.
It expects cost savings of more than 700 million pounds within five years of the deal’s completion, through measures such as merging IT systems; combining marketing, sales, distribution and logistics activities; and general cost-cutting. The firms said it was too early to put a figure on the number of jobs that would be affected.
Unite, Britain’s largest trade union, urged the government to “step in and stop this reckless merger,” arguing it would lead to job losses and push up prices for customers.
The deal comes a month after Vodafone announced that it was laying off 11,000 workers globally as part of a major revamp aimed at cutting costs and boosting flagging financial performance.
Vodafone U.K. and Three U.K. pledged to invest 11 billion pounds in Britain over the next 10 years to create one of Europe’s biggest 5G networks, promising that every school and hospital in the country will have access to standalone 5G by 2030.
Given that the deal would reduce the number of mobile operators in the U.K. — EE and O2 being the other two — it will be scrutinized closely by the Competition and Markets Authority. Other smaller firms, such as Sky and Tesco, piggyback on the big four’s networks.
Rocio Concha, director of policy and advocacy and consumer champion publication Which?, said the deal will require a thorough assessment from the regulator to ensure it is not harmful to consumers.
“A good mobile connection is essential to everyday modern life, and this merger between Vodafone and Three will have a significant impact on the telecoms market,” she said.
“Reducing the number of network providers from four to three risks reducing the choices available to consumers, raising prices and lowering the quality of services available,” she added.
(AP)
Follow us on:
https://cdn.veri.app/13646108-d5ec-478b-a54c-b01f60dbca29.mp4 President Bola Ahmed Tinubu On Thursday directed Vice President, Kashim Shettima to lead Nigeria’s…
The United Sates (US) Vice President Kamala Harris has expressed her willingness to use her…
Gabriella Uwadiegwu says cultural and societal barriers hinder women's tech careers, citing biases and limited…
Brazil has fined Elon Musk’s companies, X (formerly Twitter) and Starlink, after users in the…
The European Union has pledged to provide Ukraine with a substantial loan of up to…
President of Zimbabwe Dr. E.D. Mnangagwa will not be attending this year’s United Nations General…
View Comments
O7O 4540 6674 }SOME CAR LIST BELOW.
Golf 2 3 4 500k __ 700k
2003 Matrix N1m80k
2001 Honda CRV 800k
2003 Honda Element 950k
2003 Camry 990k
2006 Honda Ridgeline 2.6m
2012 Camry LE 2.750m
2013 Ford Edge SEL 3.9m
2014 Ford Edge SEL 4.3m
Fresh like toks 2013 Benz E200 N8.2m
2008 Rav4 1.9m
2014 Kia Cerato 2.9m
2011 Benz GLK350 5m
2014 Range Rover evogue 6.650m
2006 Quest 850k
2008 Kia Rio 800k
2008 Camry Xle 1.680m
O7O 4540 6674 }
TOKUNBO CARS BELOW :�
O7O 4540 6674 }
2004 Corolla Sport 1.8m
2006 Corolla Sport 1.970m
2010 Corolla Sport 2.980m
Awoof 2008 Lexus RX350 3.5m
2003 Camry XLE - Back Vent AC - V4 - 1.580m
2001 Camry N1.280m
2003 Camry N1.520m
2005 Camry LE 1.680m
2005 Matrix 1.7m
2007 Toyota Camry 2.3m
2008 Camry Sport 2.850m
O8O 8271 2224 }
2007 Rav4 Sport N2.8m
2011 Honda pilot EX 4.4m
2005 Benz E320 N2.4m
1999 Sienna 1.550m
2000 Lexus RX300 1.9m
Pegeout 407 Manual AC 800k
2008 Honda CRV EX 2.850m
2009 Corolla XLE - Alloy + Formica 2.850m
2004 Toyota LandCruiser 4.5m
2004 Corolla LE 1.8m
2010 RX350 6.1m with Mouse
2011 RX350 6.8m with mouse 6.550m
2008 Toyota Tacoma 6.8m
2006 Avalon Thumbstart 2.5m
2007 Avalon key 2.1m
2009 Pointiac Vibes 2.8m
2006 Benz E230 N2.4m
2007 Sienna CE 1.980m
2006 Sienna XLE 2.550m
2013 Corolla Sport 3.5m
2008 Camry LE 2.350m
2009 Camry LE 2.4m
2015 Lexus GX460 20.4m
2014 Lexus ES350 9.4m
2006 Corolla Manual N1.580m
2009 Acura MDX 4.6m
08 Benz C300 3.850m
07 Benz GL450 5.7m
08 Benz GL550 5.8m
2004 Rav4 1.850m
Awoof 04 Pilot N1.750m
2007 Pilot 2.4m EX
2009 Highlander sport 4.8m
2011 Highlander Limited 6.2m
2010 Rav4 EX Rev Camera + Thumbstart@ 4.3m
08 Honda Accord N2.4m
2010 Camry XLE 3.2m V4
2013 Honda Accord 4.5m
2014 Honda Accord N4.7m
2003 Matrix N1m80k
2001 Honda CRV 800k
2003 Honda Element 950k
2003 Camry 990k
2006 Honda Ridgeline 2.6m
2012 Camry LE 2.750m
2013 Ford Edge SEL 3.9m
2014 Ford Edge SEL 4.3m
Fresh like toks 2013 Benz E200 N8.2m
2008 Rav4 1.9m
2014 Kia Cerato 2.9m
2011 Benz GLK350 5m
2014 Range Rover evogue 6.650m
2006 Quest 850k
2008 Kia Rio 900k
2008 Camry Xle 1.680m
TOKUNBO CARS BELOW :�O7O 4540 6674 }!!All VEHICLES ARE HIGHLY NEGOTIABLE!!