Vodafone is investing £11 billion over the next decade, including £1.3bn in capital expenditure in the first year, after completing its merger with rival operator Three.
The FTSE 100 telecoms group said the expenditure will accelerate the roll-out of the 5G network.
Following the tie-up with Chinese conglomerate CK Hutchison, Vodafone will control 51% of the new business called VodafoneThree which will become Britain’s biggest mobile operator.
The chief executive is Max Taylor, who currently leads Vodafone UK. Three UK’s Darren Purkis is appointed chief financial officer.
The combined business is expected to deliver cost and capex synergies of £700 million a year by the fifth year after completion.
Margherita Della Valle, Vodafone Group chief executive, said: “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.”
Canning Fok, deputy chairman of CK Hutchison and executive chairman of CKHGT, said: “As we have demonstrated in other European markets, scale enables the significant investment needed to deliver the world-beating mobile networks our customers expect, and the Vodafone and Three merger provides that scale.
“In addition, this transaction unlocks significant shareholder value, returning approximately £1.3bn in net cash to the Group.”
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