The UK mobile market is 'increasingly out of balance', according to VodafoneThree's Mobile Market Index. The joint venture, formed last year after regulators approved the merger of Vodafone and Three, points to a combination of factors that hamper investment – higher energy costs, an engineering skills shortage, high spectrum charges, an increasingly competitive MVNO market and, inevitably, what it calls 'restrictive regulatory policy'.
Some might note the irony: this was the same regulatory policy that greenlighted the £11bn merger promise in the first place. The index suggests the UK struggles to match other countries on mobile investment, though the report does not offer a direct comparison.
“VodafoneThree's index says UK mobile market is 'increasingly out of balance' due to energy costs, skills shortage, spectrum charges, and regulatory policy.”
Meanwhile, O2 – now part of the merged entity – has expanded its 5G standalone network, which is now available to more than 85% of the UK population. The network slicing technology that enables dedicated virtual networks for specific services was recently tested by Vodafone and Nokia in Albania, but the domestic market remains the focus of regulatory scrutiny.
The index’s findings land at a time when the merged operator is under pressure to deliver on its investment pledges while navigating the very policy framework it criticises. Whether the imbalance can be redressed without further regulatory intervention remains an open question.