Vodafone takes full control of Three
May 5, 2026
Vodafone Group has reached an agreement for the buyout of CK Hutchison Group Telecom from the VodafoneThree joint venture for £4.3 billion (€4.9 billion) via a cancellation of shares. Following completion of the Transaction, Vodafone will become the sole owner of VodafoneThree, the UK’s largest mobile operator.
“Since the merger of Vodafone UK and Three UK last year, significant progress has been made in integrating the two businesses. This has led to considerable improvements in network quality, which have been delivered ahead of schedule, as we look to build the UK’s best 5G network. Consumers and businesses up and down the country are already benefiting from greater coverage, speeds and reliability,” the company said in a press statement.
“Alongside these network upgrades, we have also seen a significant improvement in overall customer experience and loyalty across all of our brands. Most notably, Three has seen a significant improvement in customer retention, and we are already successfully cross selling a broad range of products, including home broadband and Fixed Wireless Access, to the largest UK mobile base,” continued Vodafone. “This strong start to the integration means we are now even more confident on delivering our plans to create one of Europe’s leading telecoms networks, which include expecting to realise £700 million annual cost and capital expenditure synergies by FY30. We believe now is the right time to take full ownership of VodafoneThree, enabling us to move at an even faster pace to transform the UK’s digital infrastructure and realise value for our shareholders.”
Margherita Della Valle, Chief Executive of Vodafone Group, commented: “A year on from the merger, the team has made remarkable progress, as we maximise the full potential of VodafoneThree and capture the significant synergies. I’m delighted that we will now have full ownership of VodafoneThree as we roll out one of Europe’s most advanced 5G networks, provide the UK’s best customer experience and drive long-term value for our shareholders.”
Commenting on the deal, Ernest Doku, telecoms expert at Uswitch, said: “The news that Vodafone is taking full control of VodafoneThree is a major milestone for the UK telecoms market, bringing 27 million customers under one roof much sooner than expected. While a single owner could speed up the 11 billion pound investment into a better 5G network, it also likely means the end of the road for Three as the independent ‘challenger’ that has traditionally pushed for lower prices and faster connectivity.
“With Vodafone now solely in the driving seat, it must continue to prove that having one less competitor won’t simply lead to higher bills for consumers, or a market where there is less pressure to compete or innovate. Vodafone has indicated that the Three and Vodafone brands will stay separate for now, but customers should keep a close eye on the future of low-cost alternatives like SMARTY and VOXI, which are vital for budget-conscious consumers. If you are a customer of either network, the best way to ensure you are getting a fair deal as the market changes is to regularly compare your options and consider smaller providers who often offer better value,” added Doku.
Emma Mohr-McClune, Chief Analyst of Consumer Telecom at GlobalData, the intelligence and productivity platform, noted: “The news is positive on many different fronts. Full ownership of the UK entity will hand Vodafone UK significant operational and streamlined decision-making benefits as it works towards its network, customer management, energy consumption reduction and mobile network investment execution plans.”
Gary Barton, Research Director of Enterprise Services at GlobalData, stated: “Although the original VodafoneThree JV deal was viewed as primarily a residential market win, there are also Enterprise and Wholesale sector wins. Vodafone UK as a fully-fledged part of the Vodafone Group rather than the arms-length arrangement that exists with the JV in place. As Vodafone’s UK network is improved with 5G SA and the full integration of the 3 network and spectrum, Vodafone will also emerge as a more potent option for global mobile service solutions and as a global wholesale partner.”
Mohr-McClune added: “As the link between tech and politics becomes increasingly relevant, the deal could also make for sound future-proofing. Sole ownership could also serve to head-off geopolitical pressures, which could in a future scenario without this deal make life harder for the 51 per cent owner of a VodafoneThree network part-owned by a company based in Hong Kong, China. Sole ownership of the UK network should also allow Vodafone UK more AI decision-making leverage. Although barely mentioned in any of the previous announcements regarding the planned and then completed tie-up between Vodafone UK and Three UK, sole ownership will aid important Network AI implementation and execution, making a complex set of investment decisions easier, and potentially faster.”