Vodafone’s £11bn 5G rollout at risk if Three merger is blocked
Vodafone’s UK boss has warned that the company’s £11bn investment in the UK’s 5G network is at risk if its merger with Three is blocked by the country’s competition regulator.
Without the deal, Vodafone “won’t be able to invest as much and we won’t be able to deliver the 5G ambition that’s coming in the wireless infrastructure strategy from the government,” Ahmed Essam, CEO of Vodafone UK, said in an interview with The Times.
The government outlined its Wireless Infrastructure Strategy in April, which included a commitment to providing standalone 5G coverage nationwide by 2030.
Essam said he believes the proposed merger with Three can help deliver the government’s ambition.
“The UK doesn’t rank well in terms of 5G across Europe,” said Essam, explaining that the merger “brings the scale” needed for investment in 5G.
“But if it doesn’t happen, those targets probably won’t be met, by Vodafone at least,” he warned.
While Essam also warned that the merged entity “will become a much more effective competitor to BT and VM02”, the deal is subject to approval from the Competition and Markets Authority (CMA), which is currently investigating the merger.
In 2016, the European Commission blocked a merger between other telecoms giant O2 and Three, while in April the CMA decided to block Microsoft’s acquisition of Activision Blizzard.
City PM approached Vodafone, Three, the CMA and the government for comment.
The government told The Times: “We welcome investment where it supports growth and jobs, providing that such investments also meet regulatory requirements.”