The UK communications regulator, Ofcom, has informed Prime Minister Keir Starmer and Chancellor Rachel Reeves of positive early outcomes from the merger between Vodafone and Three. In an open letter, Ofcom’s chief executive highlighted initial consumer benefits and the impact of a major investment pledge tied to the deal.

Dame Melanie Dawes stated that the combined entity’s commitment to invest £11 billion in its network over eight years is already yielding results. She said this capital will “significantly improve the performance and capacity” of the mobile network, emphasizing the role of scale and sustained investment in upgrading national infrastructure.

Early Consumer Benefits Observed

According to the regulator, consumers are already experiencing tangible improvements. Network integration work has delivered faster 4G download speeds for approximately seven million people across the United Kingdom. This enhancement has occurred despite the merger being in its early stages.

Coverage has also seen a sharp improvement. Dame Melanie’s letter stated that the consolidation has eliminated mobile “not-spots” across 16,500 square kilometres. This has boosted connectivity in regions that previously suffered from weak or non-existent signal strength.

Regulatory Perspective on Consolidation

Ofcom framed these initial results as evidence that market consolidation can deliver tangible improvements in network performance and coverage. The regulator indicated this is particularly true when such mergers are tied to firm, enforceable investment commitments and operate under proactive regulatory oversight.

The letter from Dame Melanie covered a broad range of Ofcom’s policy areas, from broadband and spectrum to online safety. Her comments on the Vodafone and Three merger stood out as a clear, fact-based endorsement of the deal’s early impact and its stated long-term potential for the UK’s digital economy.

Future Regulatory Priorities

Ofcom confirmed it will continue collaborating with the government, the telecommunications industry, and other regulatory bodies to push for further advancements in mobile connectivity. The regulator identified continued investment, network performance, and geographic coverage as its top ongoing priorities in the sector.

The early assessment suggests the merger is progressing in line with the regulatory conditions and promises made during its approval process. Ofcom’s role will now focus on monitoring the continued rollout of the investment and ensuring the promised benefits for consumers and businesses are fully realized across the country.

Source: Based on Ofcom correspondence and public statements.