Mobile Phone Firm Three Boss Criticizes UK’s “Abysmal” 5G Speeds and Urges Regulators to Approve Merger with Vodafone
Robert Finnegan, the Chief Executive of mobile phone company Three, has expressed his disappointment with the UK’s slow 5G speeds and limited availability. Finnegan made his comments while advocating for the approval of Three’s planned merger with Vodafone, stating that the £15 billion move would allow for greater investment in network infrastructure.
In its half-year financial report for 2024, Three reported pre-tax losses of £30 million, an improvement from the £76 million loss in the same period last year. Finnegan noted that despite scaling back on capital expenditure, the company still suffered losses due to the increasing costs of operating its network.
Finnegan stated, “Our cash flows have been negative since 2020 and our costs have almost doubled in five years, making it unsustainable for us to invest in our network. The UK’s ranking of 22nd out of 25 European countries in terms of 5G speeds and availability is a clear indication of the dysfunctional structure of the market that hinders sustainable investment.”
He continued, “Our merger with Vodafone will unlock £11 billion for digital infrastructure, allowing us to create a best-in-class 5G network in the UK and support the growth of the UK economy.”
Finnegan’s comments were based on a report by research firm Opensignal, which ranked the UK low in terms of mobile download speeds, with only Hungary, the Czech Republic, and Poland performing worse. Denmark topped the rankings, highlighting the UK’s lag in 5G technology.
The UK’s four main mobile providers – Three, Vodafone, BT/EE, and Virgin Media-O2 – have been working to roll out 5G technology to users across the country. However, the UK government’s decision to ban Chinese tech giant Huawei from involvement in building the network due to security concerns has resulted in disruptions and delays.
The Competition and Markets Authority (CMA) is currently investigating the proposed merger between Three and Vodafone, citing concerns that it could lead to higher prices and reduced quality of service for mobile phone users. The watchdog also expressed worries that the deal would make it difficult for smaller “virtual” operators, such as Sky Mobile, Lebara, and Lyca, to negotiate favorable deals for their customers, as there would be fewer network operators available to host them.
Three and Vodafone have dismissed these concerns, arguing that the merger would result in increased network investment and better competition with their major rivals, BT/EE and Virgin Media-O2. However, the CMA has expanded its probe and may not publish its final report until December, citing the complexity of the sector.
In its half-year results, Three reported a 9% increase in revenue to £1,335 million, while operating expenses rose by 5% to £548 million, attributed to an enlarged network and cost inflation. The company also gained around 352,000 customers, a 3% increase from last year, bringing their total customer base to almost 11 million.
