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VodafoneThree launch: Astute, tentative steps

12 June 2025
Access report

VodafoneThree's launch incorporates a number of swift and astute commercial decisions, which is particularly welcome given the challenging balancing act that the company needs to perform

The network upside will be felt quite quickly for Three customers primarily, with protection for Vodafone customers built in. Longer-term, the Government policy shift towards better coverage may require investment beyond the committed £11bn plan 

We view some moves as helpful to prospects in the broadband market, others less so, and continue to have question marks about the attractiveness of this segment for VodafoneThree

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Telecoms transformed: Vodafone3 merger impact

26 February 2025

With the formation of Vodafone3, we envisage continued intense competition at the low end of the mobile market, a ramping up of pressure at the top end over time, and some opportunities in the short term.

New information on spectrum trading confirms the view that BT/EE will be most capacity constrained, but with various strategic options available to it.

Expected EBITDA growth of 9% p.a. at Vodafone3 would allow Vodafone Group to almost double its excess FCF. Budgeting for buying CK Hutchison’s stake, however, may curtail Vodafone’s spending over the coming years.

Access report

Possibly first, probably better: Vodafone's prospects with AST Space Mobile

30 January 2025

Vodafone has announced that it is looking to launch a satellite direct-to-device service with AST Space Mobile in Europe "later in 2025 and 2026", while also demonstrating the first satellite video call in the UK.

The key challenge for AST Space Mobile is scaling up its constellation, with significant uncertainty remaining around their ability to both manufacture satellites on time and the rockets available to deliver them.

Potential for a full mobile broadband service is a key differentiator versus Starlink's text-only service, and if AST can deliver then Vodafone could be first to market in the UK with a direct-to-device service.

Access report

  • Telecoms transformed: Vodafone3 merger impact

    26 February 2025

    With the formation of Vodafone3, we envisage continued intense competition at the low end of the mobile market, a ramping up of pressure at the top end over time, and some opportunities in the short term.

    New information on spectrum trading confirms the view that BT/EE will be most capacity constrained, but with various strategic options available to it.

    Expected EBITDA growth of 9% p.a. at Vodafone3 would allow Vodafone Group to almost double its excess FCF. Budgeting for buying CK Hutchison’s stake, however, may curtail Vodafone’s spending over the coming years.

    Access report

  • Possibly first, probably better: Vodafone's prospects with AST Space Mobile

    30 January 2025

    Vodafone has announced that it is looking to launch a satellite direct-to-device service with AST Space Mobile in Europe "later in 2025 and 2026", while also demonstrating the first satellite video call in the UK.

    The key challenge for AST Space Mobile is scaling up its constellation, with significant uncertainty remaining around their ability to both manufacture satellites on time and the rockets available to deliver them.

    Potential for a full mobile broadband service is a key differentiator versus Starlink's text-only service, and if AST can deliver then Vodafone could be first to market in the UK with a direct-to-device service.

    Access report