Kester Mann on LinkedIn: Vodafone and Three Merger: The Right Call - CCS Insight (2024)

As expected the CMA has granted the more in-depth phase 2 of the Three / Vodafone merger review. Its reasons are clear - degradation to service, difficult conditions for MVNOs like Sky, Lyca and Lebara, and higher prices for consumers all need to be ruled out.Therefore the process won’t be quick, but it will be thorough, weighing up the advantages it will bring to much needed and expensive 5G infrastructure investment and consumer choice against impact to market competition and economic prospects.My view is to the contrary. The UK is already very competitive thanks to its buoyant MVNO sector. The likes of Sky holds it own, with considerable market power despite not having a network. Its fibre business is attractive to customers who want to bundle media and telecom subscriptions.The UK’s healthy MVNO market helps keep prices competitive and offers plenty of opportunity for innovation in contract / Pay-as-you-go deals that MVNOs are known for. Indeed the JV will actively attract MVNOs so, there would be more market entrants.In addition, current MVNOs would take it as an opportunity to renegotiate their deals and switch to the JV in a bid to reduce overheads, improve margins but also launch more competitive price plans to stimulate growth. So, I believe the MVNO market will become even more lively creating consumer choice, and as a result jobs.In the issue of service, short term there may be some degradation of service. However with spectrum sharing and £11bn investment in 5G the longer-term prospect is a more reliable continuity of high speed service.There are many arguments for and against but my experience tells me that this should fall in favour of a merger.You can read a blog with more of my thoughts on this, the link is in the comments.#CMA #vodafone #three #MVNO #sky #telecoms #telecommunications #5g #mergersandacquisitionshttps://lnkd.in/eUd4ktUW.

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The telecom market, once characterised by innovation and imagination, is now facing a reality where the primary offering is becoming comparable to a pipe that delivers data instead of water. The demand for data services has surged, but the differentiation between telcos in terms of services and value add features has diminished. Consolidation is the only viable option for both Vodafone and Three to deliver something which represents growth and efficiency. Perhaps the final nail in the coffin for reimagining telco, fast forward to a utility only future.#telco #vodafone #three #data #consolidation #m&a

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As expected the CMA has granted the more in-depth phase 2 of the Three / Vodafone merger review. Its reasons are clear - degradation to service, difficult conditions for MVNOs like Sky, Lyca and Lebara, and higher prices for consumers all need to be ruled out.Therefore the process won’t be quick, but it will be thorough, weighing up the advantages it will bring to much needed and expensive 5G infrastructure investment and consumer choice against impact to market competition and economic prospects.My view is to the contrary. The UK is already very competitive thanks to its buoyant MVNO sector. The likes of Sky holds it own, with considerable market power despite not having a network. Its fibre business is attractive to customers who want to bundle media and telecom subscriptions.The UK’s healthy MVNO market helps keep prices competitive and offers plenty of opportunity for innovation in contract / Pay-as-you-go deals that MVNOs are known for. Indeed the JV will actively attract MVNOs so, there would be more market entrants.In addition, current MVNOs would take it as an opportunity to renegotiate their deals and switch to the JV in a bid to reduce overheads, improve margins but also launch more competitive price plans to stimulate growth. So, I believe the MVNO market will become even more lively creating consumer choice, and as a result jobs.In the issue of service, short term there may be some degradation of service. However with spectrum sharing and £11bn investment in 5G the longer-term prospect is a more reliable continuity of high speed service.There are many arguments for and against but my experience tells me that this should fall in favour of a merger.You can read a blog by Graystone Strategy MD James Gray in the comments #mergersandacquisitions #telecoms #vodafone #cma #three https://lnkd.in/e_s8kXkf.

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Today’s #FT Lex column hits the nail on the head regarding the increasingly challenging economics for mobile operators - with revenues down by 20% in a decade and data volumes up by 30x, the financial case is no longer there for a fourth nationwide operator in our view. Subscribers can read our recent note on the topic here https://lnkd.in/duX7WZxQ

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#WebMaroc: Vodafone and Three plan to merge in the UK in a $19B deal (if regulators approve) The mobile market in Europe and the U.K. — once orchestrated to be ripe ground for competition — has been on a long-term course of consolidation, and the latest chapter in that story was made official today. Vodafone Group and Hutchison Group have announced a plan to merge their U.K. carriers, respectively the eponymous Vodafone...Learn more here: https://lnkd.in/ef8miVpE

More M&A activity from Vodafone, this time selling off their Italian business.I saw there was a piece in the Financial Times about Margherita Della Valle last week discussing the challenges of taking over at Vodafone, its share price and what was needed to shake things up given a long period of stagnation.Having now arranged to exit Spain and Italy, combined with the intention to combine the UK business with Three UK it’s clear that decisive steps are being taken and that a strategic shift is in place.Will be interesting to see if these changes result in a new direction and position for Vodafone in the market.#connectivity #networks #investment #innovation #mnos #2g #3g #4g #5g #business #spain #italy #UK #mergersandacquisitions #strategy #growth #mobile #mobilenetworkshttps://lnkd.in/e-5RVzTg

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Vodafone and Three plan to merge in $19B deal, intensifying the consolidation of Europe's mobile market. How will this impact the #M&A landscape and competition among carriers in the UK? #Vodafone #Three

Vodafone UK and Three UK merger has been on the horizon for some time and finally it is happening. It is a big change for UK's telecom market. On the upside, it will bring 99% of UK population in 5G network and promises to provide better coverage and customer experience. Together both companies will be investing £11 billion in the UK towards 5G network that supports Government targets. So it is a good news for the customers, for the UK and for the competition. However, it also means beginning of a huge merger and integration exercise which usually take a year or more. It will include merging customer base, infrastructure and employees. Such activities are not pain-free for the customers. It will be a big responsibility on both operators to execute this transition with least impact on customer experience. This may also involve redundancies where there are duplication of resources. It also involves huge opportunities for the vendors and consulting firms for the integration related activities. In the end, I hope it turns out to be well. I wish my friends at Vodafone UK and Three UK all the best with this huge news and the exciting transition phase that will be starting soon.#vodafone #Three #hutchinson #vodafonebusiness #merger #mergersandacquisitions #telecom #opportunities #network #customerexperience #infrastructure #alishah

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