Three UK consumer losses also continued, although churn improved by 1.7 percentage points year-on-year, supported by what Vodafone described as a “best-in-class customer experience.”

The newly combined VodafoneThree business now serves more than 28 million customers, making it the biggest mobile network operator in the UK. Vodafone said integration has progressed quickly, with spectrum and network sharing already activated for 28.6 million customers who can now seamlessly use both networks.

Vodafone said its UK mobile performance remained commercially resilient in the third quarter of FY26, even as underlying service revenue declined slightly due to tough prior-year comparisons and the after-effects of major business contracts.

The operator reported a 42.8 per cent increase in mobile service revenue in the UK, driven primarily by the consolidation of Three UK following the completion of the merger on 31 May 2025. Oorganic mobile service revenue fell 1.8 per cent, reflecting strong comparative performance in both Business and Wholesale segments during the prior year.

Overall UK service revenue rose 31.1 per cent to £1.72 billion, while total revenue climbed 30.9 per cent to £2.12 billion. The company reiterated that the organic decline of 0.5 per cent had been expected.

Sub-brands VOXI and SMARTY added 38,000 customers in Q3, signalling continued momentum in value-focused propositions.

Upgrades

The company has modernised over 8,000 radio sites and eliminated 16,500 km² of partial coverage areas, while seven million Three and SMARTY users have seen 4G speeds improve by up to 40 per cent through combined spectrum.

Mmulti-brand 

Vodafone is pursuing a multi-brand consumer strategy spanning Vodafone, Three, VOXI, SMARTY and Talkmobile. In November 2025, it launched the “Vodafone Together Family” proposition, allowing households to bundle mobile and broadband services alongside security features via Vodafone Secure Net.

While the quarter showed pressure in enterprise revenue — Vodafone Business service revenue fell 4.3 per cent, or 5.4 per cent organically — the drop was attributed mainly to a previously flagged one-off project booked in the prior year.

Convergence

Although the focus remains on mobile, Vodafone pointed to strong broadband momentum as part of its convergence strategy. The operator added 64,000 broadband customers in the quarter and now has the capability to serve 22 million households with gigabit speeds. It also added 11,000 fixed wireless access customers, reported within the mobile segment.

Integration

At group level, Vodafone said the UK integration is “progressing well and firmly on track,” reinforcing expectations that the business will help support delivery at the upper end of FY26 guidance.

The UK now accounts for 23 per cent of group service revenue, underlining its strategic importance as Vodafone seeks to extract synergies from the merger while stabilising underlying growth.

Despite the short-term organic softness, the scale benefits of the Three combination alongside network improvements and brand-led customer strategies position Vodafone to compete more aggressively in an increasingly converged UK telecoms market.

They say they will also provide a pricing framework that encourages other MVNOs to access their additional network capacity. Upon approval of the merger, Vodafone and Three have also agreed to sell spectrum to Virgin Media O2.

Concerns

The Competition and Mergers Authority has concerns about price increases resulting from the merger of Vodafone and Three. But these are unfounded, say the two networks.

In a statement issued in response to the CMA’s findings that the merger could lead to price rises, both Vodafone and Three say they strongly believe the merger is pro-competitive and remain confident that outstanding issues can be resolved.

“Vodafone and Three disagree with the CMA’s Provisional Findings. Our merger will be pro-growth, pro-customer, pro-investment, and pro-competitive for the UK. It is a once-in-a-generation opportunity to transform UK digital infrastructure with £11 billion of network investment,” said a joint statement.

“We continue to constructively engage with the CMA and remain confident that we can work with them to secure approval. Our £11 billion network investment commitment will ensure UK customers enjoy one of Europe’s most advanced networks, and it will level the playing field with the two larger players to drive competitiveness. We are happy for Ofcom to monitor and enforce this commitment. The merger will extend the network quality benefits well beyond the merged company’s own customer base, by extending it to VMO2’s direct and MVNO customers.

“This agreement will deliver better quality, enhanced capacity, and greater coverage to over 50 million mobile customers across the country.. The CMA’s final decision on the merger is not due until 7 December, and we will continue to positively engage with them to resolve outstanding matters.”

Analyst Paolo Pescatore called the statement “unsurprisingly defiant.”

He added, “They still largely disagree with the remedies, but encouragingly show a clear willingness to work closely on a number of areas, such as the commitment to investment over the long term, a price freeze on selected tariffs under £10 for two years, and collaboration to increase competition in wholesale. It remains to be seen if the entity has done enough on pricing to ease the CMA’s concerns. This could be the sticking point that makes or breaks the deal. A path to approval exists, which is key for all parties.”

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This is an improvement from the £112 million shortfall in early 2023. However revenue climbed nine per cent to £1.335 billion, up from £1.227 billion in the same period last year. The increase was driven by a six per cent rise in net customer revenue and a 10 per cent boost in handset sales, bolstered by growth in key customer segments including the MVNMO SMARTY, B2B, and 5G Home Broadband.

Operating expenses rose by five per cent to £548 million, due to to network expansion and inflation. EBITDA (Earnings Before Interest Tax Depreciation and Amortisation) increased 31 per cent increase to £213 million, up from £163 million last year.

Three UK continues to face financial difficulties, reporting an Earnings Before Interest and Taxes of £30 million, though this is better than £76 million loss recorded in the same period last year.

The active customer base grew by three per cent, adding 352,000 new customers to reach a total of 10.9 million. Contract customers increased by five cent to 9.2 million, driven by gains in the B2B, 5G Home Broadband, and SMARTY segments, which offset declines in core business areas.

More than 900 sites were upgraded and 3,000 miles of fibre were replaced. Another 311 new sites were added under the UK’s Shared Rural Network program, with 269 of these sites now live.

Data usage per customer was up 24 per cent increase, averaging 30.5GB per month. Three UK expanded its 5G network to 4,900 sites across 656 towns and cities, achieving 62% population coverage. The company also launched network services in London Underground stations, bringing connectivity to key stations including Paddington and Canary Wharf.

CEO Robert Finnegan, highlighted the ongoing financial challenges due to rising operational costs and sustained negative cashflows since 2020.

“UK mobile networks rank 22nd out of 25 in Europe for 5G speeds and availability. The market structure prevents us from investing sustainably to address this issue. Our merger with Vodafone will unlock £11 billion for digital infrastructure, creating a world-class 5G network and driving economic growth in the UK”.

Three’s active customer base increased by six per cent by almost 565,000 10.3 million. Contract customers grew five per cent to 8.59m primarily driven by B2B connections and the SMARTY MVNO.

But monthly average customer churn increased to 1.45 per cent from 1.1 per cent a year ago due to “due to challenging economic conditions” as customers looked for the best deals.

Three UK chief executive Robert Finnegan commented:

“We have continued to see growth this quarter with a strong year-on-year performance reflected in a six per cent increase in our active customer base, five per cent in revenue and seven per cent in margin.

“We also delivered our new IT systems, which will transform our customer offering and give customers the flexibility to choose their plan. “However, our returns remain below the cost of capital. Connectivity is crucial to how we live and work. For the industry to continue investing in the UK’s digital infrastructure, market structural change is needed.”

SMARTY mobile has unveiled its winter sale deals on a flexible one month plan.

Its latest Sim deals include 200GB for £14 (was £17) and the new 24GB plan (was 12GB) gives double data for £8.

SMARTY’s plans all come with lots of data, unlimited calls and texts, 5G at no extra cost and EU roaming included up to 12GB.

You can get a SMARTY sim card from its website, or pick up a sim from a high street store such as Sainsbury’s, Argos, Poundland, WHSmiths and McColls.

SMARTY’s data-only SIM also offers an EU roaming data plan, which includes 12GB data, thus making travelling in the EU less of a hassle. 

The SIM also protects you from cyber theft and eliminates public Wi-Fi risks. 

New and existing customers will also not face annual price rises, as SMARTY Mobile’s 30-day rolling plan claims that customers won’t be forced to accept annual price increases during the term of their contract. 

SMARTY is also on its way to roll out 5G connectivity, powered by Three’s network, at no extra cost. 

Visit the website www.smarty.co.uk to purchase your data-only SIM and their newly unlocked 5G speeds in your area using SMARTY’s own postcode-based coverage checker.

SMARTY mobile is offering customers an extra 20GB of data every month for a whole year on its 30GB for £10 SIM-only plan.

The monthly rolling plan involves unlimited calls and texts, EU roaming with 12GB of data, 5G and no annual price rises.

SMARTY says switching from a pay monthly plan to SIM only can save money amid the cost of living crisis and its new deal means you get 50GB of data per month for just £10.

Its 30-day rolling plan offers flexibility and customers won’t be faced with annual price increases during the contract.

SIM-only mobile brand SMARTY and refurbished tech brand Reboxed have joined forces to offer its customers exclusive discounts on refurbished phones through Reboxed ‘rehome, rebox, repeat’ service.

Reboxed lets customers sell, swap, or shop quality reboxed, refurbished tech and ensures every handset sold has a 12 month warranty by inspecting, data cleaning and certifying every device. 

SMARTY is partnering with the brand to offer discounts of up to £50 off Reboxed phones for pre-existing customers so they can enjoy affordable phones to accompany their SIM cards.

The exclusive SMARTY Reboxed discount offers SMARTY customers £10 off handsets up to £300, £30 off handsets from £301 to £600 and £50 off handsets over £600. 

SMARTY Mobile head of marketing Sayed Hajamaideen said: “For every reboxed device sold, reboxed plants 5 trees to help offset the products carbon footprint. 

“We’re delighted to introduce reboxed as an official and exclusive tech partner of SMARTY and to be able to offer our customers even better value on their already competitively priced handsets.”

Reboxed co-founder Phil Kemish added: “People have a growing need for quality tech without the long contracts and costs associated with buying new. 

“This, mixed with our need to make smarter choices for the planet, make the reboxed and SMARTY partnership a better way to keep up-to-date with the latest tech while making a better choice for the planet.”

SMARTY Mobile has launched its new SIM-only deal with 100GB data a month for only £12.

This deal is available from now until July 27 2022 and the rolling plan includes unlimited calls and texts, EU roaming and fast 5G all with no extra cost.

SMARTY has also promised new and existing customers that they will not face annual price rises as its 30-day flexible rolling plans mean customers won’t have to accept price increases during their contract.

The SIM-only company is powered by Three’s network and continues to roll out 5G to customers across the UK.

More than three million out-of-contract customers could save a total of £670 million annually by switching to SIM-only deals according to Uswitch.

These customers could save an average of £207 a year by changing to a SIM-only tariff on a flexible 30-day or 12-month offer.

The cheapest flexible option comes from Lebara, costing £3.95 per month for 1GB data, 200 minutes of calls and unlimited texts.

If customers want a 12-month contract, Three offers unlimited data, calls and texts for £16 a month, and SMARTY offers 60GB of data for £10 a month including EU roaming. 

Uswitch.com telecoms expert Ernest Doku said: “If you’re out of contract on a pay-monthly deal with your mobile provider it’s important to remember that you now own your handset outright and could reduce your bill dramatically by switching to a SIM-only plan.

“Even if you’re on a ‘split deal’ where you have one plan for your handset and another for minutes, texts and data, you will find that once that ‘airtime’ contract expires, you can likely make additional savings by opting for a SIM-only deal in its place.   

“If you’re not sure when your current pay-monthly deal ends, check your paperwork from your network and make a note of the end date so you’ll be ready to switch should you see a better deal.” 

Uswitch urges anyone out of contract with their mobile provider to run a comparison online to check their options and see if they can save with a better deal.