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Long in the works and now official, Vodafone has merged its UK mobile network with Three UK that will see the number of UK networks cut from 4 to 3 and a new combined company emerge, even if it seems like VodafoneThree (yes that is the name at present) will keep both brands for the time being.
However, there’s one big unanswered question for me – how much will mobile bills go up by? I’m currently with Three UK and have had a SIM-free contract for quite a few years meaning that I’ve been immune to things like post-Brexit roaming charges. And I’ve got unlimited data for quite a cheap rate so I think I stand to lose more than most.
As part of the deal, the UK’s Competition and Markets Authority (CMA) required VodafoneThree to cap “selected mobile tariffs and data plans for three years, directly protecting large numbers of VodafoneThree customers from short-term price rises in the early years of the network plan.”
Note that it doesn’t say ‘all tariffs and data plans’. So it remains to be seen what ‘selected plans’ means for bill payers like you and me, who now have fewer choices when choosing where to go for their next mobile deal.
In its announcement of the £15bn deal, VodafoneThree went to lengths to say how much it will invest in its 5G capability – a whopping £11bn over the next 10 years – but it was telling that there was no mention of consumers at all. I think it’s inevitable that such a deal will be bad for everyday bill payers after the initial protections end.
The CMA eventually waved the deal through because of the combined company’s pledge to spend that extra cash on its combined network.
Price increases are surely on the way
But the tone of its initial report last September was somewhat different, saying that users like you and me would lose out – in particular those who could least afford it on cheaper contracts.
At the time the CMA said the deal “would lead to price increases for tens of millions of mobile customers, or see customers get a reduced service such as smaller data packages in their contracts.” So people would essentially end up getting less data for the same amount, or paying more for the same amount of data.
The CMA added that “higher bills or reduced services would negatively affect those customers least able to afford mobile services as well as those who might have to pay more for improvements in network quality they do not value” – essentially saying that less data hungry users would still end up paying for the improvements to 5G networks.
And it was also warned that the deal would adversely affect virtual networks like Lyca and Lebara running their services on VodafoneThree. “[It] would lead to a substantial lessening of competition in the UK – in both retail and wholesale mobile markets.” Not great.
However, as we now know, these concerns were eventually binned, essentially saying the extra funds pledged to improve 5G networks outweigh any worries about your bill getting more expensive. Which they surely will.
What should you do now if you’re a Vodafone UK or Three UK customer?
If you’re happy and your price doesn’t rise, you’re probably on one of the “selected mobile tariffs and data plans” that VodafoneThree has pledged to protect for three years. However, at that point you will need to decide what to do, and a change may be in order. If you’re on a Vodafone/Three tariff where the price starts to rise ahead of the three years, it’s probably time to compare your tariff with what else is out there.
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