Posted 5 May 2023

Vodafone and Three merger - Bad news

thetimes.co.uk/art…gt8


The dreaded day is inching closer. And it is not for the benefit of consumers, surely. Expect price rises and even poorer services. Both are notorious for that,

Have you noticed Three network's all inclusive deals were £16 pm and are now £24 ? Their cheaper MVNO, Smarty, is now £16 all in ! A major shift of the benchmark bar. Only a matter of time when others start following suit.

Ripoff Britain continues, and am sure watchdog might wave the deal through, to keep friends in the square mile happy.
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  1. jamie15's avatar
    Dreadful news and I hope the CMA blocks this. I have a bit of hope that they may do but last time it was the European Commission which blocked the O2/Three merger.

    The govt seems to be all for this deal to push their 5G everywhere idea. Personally I don't see why a merger needs to happen for this - we have things like the shared rural network to make more remote areas viable, and 5G in major cities is already rolled out, with more 3G/4G sites due to be upgraded.

    This deal will harm competition severely with no benefits to consumers. In fact there is less incentive to provide a good service competitively priced with lack of choice.

    Looking at the BT/EE merger, Plusnet and BT Mobile MVNOs both shutting down. With the VMO2 merger, Virgin Mobile (UKs largest MVNO) shutting down and it wouldn't surprise me to see Tesco and Giffgaff have changes in future. However, both those deals are not the same as it is more focused on offering quad play (broadband, TV, phone, mobile) - this merger is 2 direct competitors with their own infrastructure.

    This has a far bigger impact - in future when MVNOs go to negotiate a new wholesale agreement (ID, Talkmobile etc), they would only have 3 networks to go to. Three is often the cheapest, but a combined Three/Voda would allow the combined group to charge higher prices closer to the rates EE and VMO2 charge - this likely means higher prices at every MVNO.

    Furthermore, the network owned MVNOs (VOXI, SMARTY) have no incentive to compete with each other.

    Something worth noting, Hutchinson (a Hong Kong based company) are Three's owner, and there are concerns about the company's connections to China. I am surprised there is no political concern yet about Hutchinson owning 49% of a bigger telco with more importance, but this could be further scrutinised if the deal progresses. (edited)
  2. googleboogle's avatar
    Hutchinson (a Hong Kong based company) used to own Orange didn't they ? who then became EE and merged with T-mobile, (who used to be One2One), when then got bought by BT

    In the past BT had a share in O2 didnt they ?

    Its all a circle of life, and a game to keep the rich rich.
    jamie15's avatar
    Now we realise how vital mobile networks are, you'd hope that attitudes would change to stop more consolidation and less competition.
  3. jase.2's avatar
    Not sure why they would when they blocked Three and o2 getting together 
    001Cisco's avatar
    I think it was blocked by EU? (edited)
  4. EN1GMA's avatar
    watch the CMA approve this
  5. bigbill's avatar
    Just last week left Vodafone due to no EU roaming and moved 4 sim only plans to Smarty, luckily on a rolling month to month plan so if roaming is stopped later by them I will move again.
  6. Gollywood's avatar
    I left 3 because of 3.

    Now I'll have to leave Vodafone because of 3
    michaeljb's avatar
    and soon you wont be able to afford ee because of 3, that leaves you with o2 and we all know how good their service is
  7. KIRK_LAZARUS's avatar
    Yes it’s bad for healthy competition but on the plus side network coverage could improve . Question is speed ? could reduce most likely
  8. The2Time's avatar
    ''Their cheaper MVNO, Smarty, is now £16 all in''


    And that's a bad deal for unlimited everything?
    Onlydongles's avatar
    Author
    Surely. It was £16 for Three not many weeks ago, and Smarty would come around £10 to 12 pm.

    Even inflation is not running at 50 percent. Go figure.

    Before brexit, they were championing FREE EU roaming as a selling point and advertising to the hilt. And as soon as they got a chance ? Mutual back scratching with their EU counterparts. the so called costs evens out when continental clients visit UK. Its the cusotmers who pay for it eventually.

    Please convince me that its not a cartelised racket, under the very noses of our tootless tigers (Regulators). ANd please dont give hte arguments about free market etc.
  9. madoka_ayukawa's avatar
    Hope this happens soon, so I'll be able to get the top phones at the lowest prices (all the best deals on mobile phone sites links Three as it's carrier with the best prices on the latest phones, including MVNO
    agentcain's avatar
    We're talking about net loss on services and prices competition and you're concerned with the cost of mobile phone devices? Just go buy it yourself. Also, no need to get the latest and greatest.
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