Vodafone CEO warns Three UK merger is key for delivering nationwide 5G

Vodafone Group’s CEO, Margherita Della Valle, has warned that the Labour government’s goal of nationwide 5G access by 2030 would be unattainable if Vodafone’s proposed £15 billion merger with Three UK is blocked.

Speaking to The Guardian, Della Valle said: “Everyone now talks about [things like] artificial intelligence, all of these things cannot happen without good networks.


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“All policymakers understand now the importance of having good quality networks. Look at Labour’s manifesto, for example … nationwide 5G by 2030. There is no doubt that a catalyst is needed to get there because it’s not going to be done [by the current market].”

This comes as Vodafone’s merger with Three, which would form the UK’s largest mobile operator, is under investigation by the Competition and Markets Authority (CMA).

As a result, the CMA launched an in-depth investigation in April, concerned that reduced competition among UK mobile network providers could lead to higher consumer prices.

However, Vodafone and Three argue that the merger is vital for investment and competition against BT and Virgin Media O2, including competitive pricing.

The companies have committed to investing £11 billion over the next decade to enhance and expand their 5G network as part of the merger.

“It is a really big decision for the UK, a big industrial policy decision,” Della Valle said. “Everyone thinks about the impact on telcos [telecommunications operators]. The reality is our industry is one of a handful that impacts on many other sectors, [on] everyday life. It is critical for economic growth more broadly.”

The CEO of the telecoms giant added if the merger is blocked, Vodafone would need to reduce investment.

“We don’t have the scale to invest, especially for something like 5G across the board, which is what the UK needs,” she said. “The cost [of the deal being blocked] is even more constrained investment. [The deal] is going to close between now and the end of the year but the next few months are going to be the critical ones.

“At the moment, the UK has been lagging behind. By creating a third scale operator – [from] the two little guys – the merger has the ability to unlock this.”