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VodaphoneThree merger promises expanded Multi-Operator Core Network tech for UK

Mobile Operators
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As part of its €19.5bn merger and subsequent €1.1bn network expansion, VodaphoneThree has said it will expand the UK networks’ multi-operator core network (MOCN) functionality. 

The merger between the third and fourth largest UK connectivity providers to become the single biggest operator in the country came with a raft of legally binding conditions from the Competition and Markets Authority (CMA). 

These included the new company spending £11bn (€13.5bn) over the next decade on upgrading the combined network, committing to retaining existing tariffs and data plans for three years, and upgrading 5G coverage.  

First announced in 2023, the merger is the largest change the UK telco industry has seen in years, reducing what was just four domestic network operators to only three, the other two being BT/EE and Virgin Media O2. 

The CMA was initially skeptical of the combo, warning of reduced competition and higher bills. They were placated by the promise of wider 5G and MOCN functionality, giving the official green light late in 2024.  

How Multi-Operator Core Networks function  

MOCN features allow multiple mobile network operators (MNOs) to connect their independent core networks to a shared Radio Access Network (RAN) – the web of cell towers and antennas that devices directly connect to.  

In a MOCN setup, each participating operator broadcasts its own distinct network identity over the shared RAN, enabling subscribers' devices to connect to their respective home operator's core network for services, billing, and authentication.  

This means that while the physical radio infrastructure is common, each operator maintains full control over its own services, features, and subscribers, ensuring service differentiation and independent operation. 

The importance of MOCN is that it hugely reduces the high capital and operational costs of deploying RAN infrastructure, as operators can communally share the expense.  

MOCN is instrumental in accelerating the rollout of 5G and expanding its coverage, especially in underserved or geographically challenging areas. It’s also a keystone for private mobile networks, which allow enterprises to create dedicated, secure, and customized core services, vital for applications in manufacturing, logistics, and critical infrastructure.  

As a telco industry leader, 1GLOBAL has been at the forefront of innovating and leveraging multi-operator connectivity since the start. Today, it's built a unique and truly global connectivity solution comprised of partnerships with 600+ cellular networks worldwide. We'll return to how 1GLOBAL has made this possible later in this article.

Potential benefits of the merger for UK digital network 

  • In 2023, research firm Opensignal published results showing UK mobile users had the worst average 5G download speeds of all G7 countries. The following year Ofcom reported that only 69% of UK rural areas had achieved even 4G coverage. 

  • For a market comparison, the Social Market Foundation released a report indicating that the average UK user has access to 5G about 10% of the time, whereas the average user in India has more than 40% of their connection covered by 5G. 

  • Why is the UK currently so far behind? The infrastructure issues are complex, but one of the most recent setbacks came in 2020 when the UK government ordered the stripping of all Huawei hardware for reasons of national security as raised by the National Cyber Security Center.  

  • Regardless of whether the alarm was justified, the program to remove all assets built by one of the world’s best-known providers of 5G tech will still be ongoing until 2027 and continues to have a slowing effect on nationwide connectivity.  

Even with the merger creating the single largest national network, and streamlining and integrating 5G efforts, telco engineering analysts suggest that it’ll be a while before the merger begins to affect market dynamics in terms of hardware. Speaking to industry press, Megabuyte Chief Analyst Philip Carse said, “It will probably take three years of network integration to see significant improvements in coverage, reliability, and capacity.” 

Speaking to reporters about the merger, Margherita Della Valle, Vodafone Group Chief Executive was more optimistic about the performance upgrade, saying “The merger will create a new force in UK mobile, transform the country’s digital infrastructure and propel the UK to the forefront of European connectivity. We are now eager to kick off our network build and rapidly bring customers greater coverage and superior network quality. The transaction completes the reshaping of Vodafone in Europe and following this period of transition we are now well positioned for growth ahead.” 

An opportunity for MVNOs 

The UK now has just three major mobile network operators (VodafoneThree, BT/EE, and Virgin Media O2) – a concentration with implications for competition, innovation, and pricing across the Mobile Virtual Network Operators (MVNO) sector. 

The merger will very likely present an opportunity for MVNOs, particularly in the business market. Vodafone has traditionally maintained long-standing partnerships with larger and more committed clients, which will cool the more aggressive, low-cost-fast-churn approach of the former Three Business, which specialized in small and medium-sized enterprises (SMEs).    

A strategic shift in either direction, de-emphasizing the bigger clients or (more likely) the SMEs, will allow new and existing MVNOs to seize the opportunity to steal share and target the customer base via competitive alternatives.  

While VodafoneThree has described itself as "pro MVNO", it has yet to do anything as concrete as publish reference pricing. Depending on these offers, astute MVNOs will be able to negotiate favorable deals, leveraging the spare capacity of the newly combined and larger network.   

Meanwhile in the UK, MVNOs operating on the O2 network are also poised to benefit, as they are expected to acquire some of the spectrum left over by the merged companies. 

The 1GLOBAL advantage 

1GLOBAL continues to maintain MVNO arrangements with top-tier RAN operators across the 1GLOBAL Zone, comprised of nine countries – including the UK. These international RAN networks connect to at least two of 1GLOBAL’s six point of presence (POP), which are positioned across four continents.  

Together, these create a truly and uniquely global network, as 1GLOBAL routes traffic to the POP that is geographically nearest, rather than a single pre-designated POP.  

This guarantees more reliable 5G coverage, better voice calls, improved quality and reduced cost, for global connectivity wherever your business takes you.  

About 1GLOBAL

1GLOBAL is a distinguished international provider of specialty telecommunications services catering to Global Enterprises, Financial Institutions, IoT, Mobile Operators and Tech & Travel companies. 1GLOBAL is an eSIM pioneer, a fully accredited and GSMA-certified telco, a full MVNO in ten countries, fully regulated in 42 countries, and covers 190+ countries.

It delivers comprehensive communication solutions that encompass Voice, Data & SMS - all supported by a unique global core network. It’s constantly expanding portfolio of advanced products and services includes White Label eSIMs, Connectivity Solutions, Compliance and Recording, Consumer & M2M SIM Provisioning and an Entitlement Server.

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1GLOBAL is a trading name of TP Global Operations Limited.