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.

The service is embedded directly within the Revolut app, allows users to activate a mobile plan intantly without visiting a store, contacting customer support or dealing with a separate network operator interface. Revolut Mobile runs on Vodafone’s 5G network, delivered by Gigs’ mobile operating system.

At launch, Revolut Mobile is being offered at an introductory price of £12.50 per month, rising to £14.99 from 24 February 2026 for new customers. Early adopters will retain the lower price. The plan includes unlimited 5G data, calls and texts in the UK, plus 20GB of roaming data across Europe and the US.

Revolut Mobile is positioned as a more flexible digital connectivity product. Features include the ability to manage multiple phone numbers within a single plan, —for example separating work and personal use, alongside global messaging, premium “VIP” number options and enhanced security controls.

The launch underlines the trend of embedded telecoms within fintech platforms. Customers can pay for their mobile plan using Revolut’s loyalty and rewards ecosystem, further blurring the lines between financial services, payments and connectivity.

Gigs is providing the underlying infrastructure that allows non-telecom brands to launch fully fledged mobile services. The company has recently announced similar partnerships with Klarna, Lendable and OnePay, signalling growing demand for telecom capabilities to be built directly into consumer digital platforms.

Hadi Nasrallah, General Manager, Telco at Revolut said: “Revolut Mobile is more than just another mobile service, it’s a truly differentiated alternative designed to change the industry. Our goal is simple: offer the best service, at the best price, leveraging the best user experience. We’re bringing true innovation with features such as multiple numbers & global messaging, while removing any hassle or hidden fees from the process.”

Hermann Frank, CEO and co-founder at Gigs added: “Revolut Mobile represents the breakthrough we envisioned when founding Gigs: the world’s most advanced phone plan, available at a tap and powered by our global connectivity platform. Now, millions of Revolut customers can stay seamlessly connected at home and abroad, all within the app they already trust. This launch demonstrates the versatility of our operating system and marks a turning point in the UK telecom market, with Revolut setting a new standard for how people stay connected.”

For mobile networks, MVNOs and channel players, Revolut Mobile represents anhow large digital brands with existing customer bases are entering connectivity and raising questions around distribution, ownership of the customer relationship and the future role of traditional retail and wholesale models.

Speaking during a Commons session, Madders referred to what he characterised as “harrowing stories” from franchisees, stopping short of asking ministers to comment on individual cases but urging recognition of the structural issues within franchise relationships.

“Without asking the department’s comments on specific cases, they will no doubt recognise the power imbalance in that relationship,” Madders told MPs. He asked whether the Government would consider measures to redress that imbalance, suggesting options including a statutory code of practice or the creation of a national arbitration system” he said.

Comments

The comments come amid an ongoing £85 million dispute between Vodafone UK and a number of its franchise partners, some of whom have alleged unfair treatment and unsustainable commercial terms. The dispute has attracted growing attention within the mobile retail and distribution channel, with franchisees warning that current arrangements leave operators exposed to financial risk with limited avenues for redress.

Responding on behalf of the Government, the minister acknowledged Madders’ work on the issue and signalled a willingness to engage further. While avoiding comment on specific cases, the minister said they would be “happy to sit down” with Madders to discuss whether there were “specific proposals” that could be brought forward to address the imbalance identified.

The response stopped short of committing to formal regulatory change but indicated that the door remains open to discussions around potential intervention.

Regulatory framework

The UK’s franchise sector currently operates without a statutory regulatory framework, relying instead on voluntary codes and contractual agreements. Critics argue that this leaves franchisees particularly vulnerable when disputes arise with large corporate partners, especially in capital-intensive sectors such as mobile retail.

Calls for reform have grown louder in recent years, with campaigners and trade bodies urging the Government to consider stronger protections, mandatory codes of conduct, and independent dispute resolution mechanisms. Similar models already exist in other markets, including Australia, where franchising is governed by a statutory code enforced by a national regulator.

For the mobile industry, the issue is particularly sensitive. Franchise models have been widely adopted by network operators seeking to maintain retail presence while reducing direct operational costs. However, franchisees argue that commercial pressures, combined with limited negotiating power, can result in unsustainable business conditions.

Madders’ intervention places the Vodafone dispute firmly on the parliamentary record and increases pressure on the Government to examine whether existing frameworks adequately protect small and medium-sized franchise operators.

While no immediate policy changes have been announced, the exchange marks the clearest signal to date that franchising practices in the telecoms sector may come under closer political scrutiny.

Mediation has failed and preparations under way for a full trial that could have wide implications for the telecoms retail sector.

Vodafone’s franchise programme offered local entrepreneurs the chance to run the stores and earn commission for no upfront cost, provided they could demonstrate that they had the funds to cover the cost of running the store for the first three months.

The case, APK Communications Ltd and others v Vodafone Ltd, was filed a year ago by more than 60 franchise operators. The claimants are seeking £85million and understood to be represented by a legal team including Knights and Bird and Bird although irepresentation in the group action may be split across other legal advisers.

Efforts to reach a negotiated settlement collapsed in May 2025, clearing the way for the dispute to proceed through the courts. Tensions escalated further a month later, when Vodafone terminated the contracts of 12 franchisees who remained in its retail network while participating in the legal action, citing an irreparable breakdown in trust.

Commission

The franchisees allege that, from around July 2020, Vodafone imposed unilateral and unreasonable changes to commission structures, alongside heavy fines and clawbacks for relatively minor compliance breaches. They argue these measures rendered many Vodafone-branded stores commercially unviable, leaving operators with significant personal debts and, in some cases, forcing store closures.

Vodafone has consistently rejected the allegations, describing the dispute as a commercial disagreement and maintaining that franchise profitability was never guaranteed. However, the company repaid around £4.9 million in adjustments following internal reviews.

Political attention

The case has attracted political attention, with MPs and ministers raising concerns about power imbalances in franchise relationships and the adequacy of protections for small business operators. In September, Vodafone confirmed it had launched a further internal inquiry into its franchising division, its fourth review in recent years.

]]> https://mobilenewscwp.co.uk/news/article/bitter-vodafone-franchisee-dispute-heads-toward-trial-as-mediation-fails/feed/ 0 https://mobilenewscwp.co.uk/news/article/vodafone-to-deploy-5g-sa-mobile-private-network-at-ospreys-rugby-stadium/ https://mobilenewscwp.co.uk/news/article/vodafone-to-deploy-5g-sa-mobile-private-network-at-ospreys-rugby-stadium/#respond Tue, 25 Nov 2025 11:41:19 +0000 https://mobilenewscwp.co.uk/?p=179361 Vodafone is to install a 5G Standalone private network at St Helen’s Sports Ground in Swansea, the home of professional rugby union team The Ospreys. 

The upgraded connectivity is part of the venue’s redevelopment, which includes transforming St Helen’s into an 8,000-capacity stadium and position the ground as among the most technologically advanced rugby venues in the UK.

Vodafone expects the new network to be fully operational by July. The intention is also to use St Helen as a research and development case where companies can trial devices, equipment, and digital technologies under real-world, high-performance conditions.

Vodafonehas already rolled out a 5G SA at Leicester Tigers’ Welford Road Stadium and completedr 4G and 5G upgrades at Tottenham Hotspur Stadium and Wimbledon.

The private network will allow a range of advanced use cases across the venue such as immersive AR and VR fan features offering behind-the-scenes access and interactive player data, IoT-enabled ticketing, digital payments and smart wayfinding to reduce queues and enhance crowd flow and safety.

The case now moves toward trial. Combined claims could ultimately involve tens of millions of UK mobile customers and run into billions in alleged damages.

The ruling is a mixed outcome for the operators. All pre-2015 claims have been struck out, but the core case covering post-2015 conduct will proceed to a full trial. But it ruled that all pre-2015 claims have lapsed.

The applications, brought by proposed class representative Justin Gutmann, allege that the networks abused dominant positions in their respective retail mobile markets.

The claims focus on customers on combined handset and airtime (CHA) contracts who continued paying the same bundled monthly charge after their minimum term expired, despite having repaid the cost of the device.

Gutmann argues that this continued charging, above the equivalent SIM-only price, amounts to an unlawful “loyalty penalty”.

ispute

The case stems from longstanding concerns raised by consumer groups and Ofcom over bundled mobile contracts. Ofcom has repeatedly criticised operators for failing to reduce prices for out-of-contract customers and has introduced rules requiring providers to notify customers at contract expiry and offer SIM-only alternatives.

Gutmann’s case argues that millions of customers overpaid for years and that operators should have automatically switched them to SIM-only pricing once handsets were fully paid off. The four collective claims were filed two years ago under the Competition Act’s post-2015 class actions regime.

Claims before 1 October 2015 struck out

All four operators jointly applied to strike out claims relating to losses before 1 October 2015. They argued that such claims were time-barred under the Competition Appeal Tribunal Rules 2003, which imposed a two-year limitation period for claims arising before that date but filed later.

Gutmann countered that the 2003 Rules applied only to follow-on cases and that ordinary domestic limitation rules should govern standalone claims.

The Tribunal rejected this argument. It held that the transitional provisions in the 2015 Rules explicitly preserved the effect of rule 31 of the 2003 Rules. As a result, any standalone claims for losses occurring before 1 October 2015 were already out of time when proceedings were issued in November 2023. The Tribunal therefore struck out all pre-2015 claims.

Operators fail to strike out 2015 to 2017 claims

A second strike-out application, brought by Vodafone, EE/BT and Three, targeted losses said to have occurred between 1 October 2015 and 8 March 2017. The operators argued that customers could reasonably have discovered any alleged overcharging before November 2017, meaning the six-year limitation period had expired.

The Tribunal refused this Second Period Application. It found that the operators had filed the application without disclosing actual contract terms or customer communications. Without that evidence, the Tribunal could not conclude that customers were sufficiently on notice of a potential competition claim at an earlier date. The issue will therefore need to be tested at trial.

Fnding arrangements

The Tribunal also approved Gutmann’s Collective Proceedings Orders (CPOs), finding that the proposed class definition, which covers customers who continued paying more than the applicable SIM-only price after minimum-term expiry, was sufficiently clear.

Operators challenged Gutmann’s litigation funding arrangements, questioning whether the funder could support the case. The Tribunal dismissed the challenge, finding no evidence that the funder would be unable to meet its obligations and rejecting additional concerns raised after publication of the funder’s financial statements.

The four actions will now move into detailed case management and disclosure.

Transcript of full ruling HERE

The new centre will allocate and map satellite links for mobile network operators helping to deliver mobile broadband to remote areas and support emergency and disaster relief communications.

The location, near Munich or Hannover, will be confirmed following final discussions with local authorities and partners.

AST SpaceMobile is developing ta space-based mobile broadband network to connect directly to smartphones. The company plans to launch a scalable satellite service across Europe from 2026, offering coverage for commercial and government use.

The European satellite network will allow control of encryption keys, telemetry, and satellite beam operations to give European authorities the ability to manage communications securely.

The system will provide direct broadband connections from space to the smartphones and devices of emergency responder in remote or dangerous locations.

Vodafone Group CEO Margherita Della Valle said:  By establishing a satellite constellation in the EU and our principal command centre in Germany, we are ensuring the next frontier of communications infrastructure is embedded in Europe.”

AST SpaceMobile Founder, Chairman and CEO Abel Avellan (below( added  “ Germany’s Operations Centre will be the hub for our BlueBird constellation in Europe, enabling us to serve millions of users. Alongside our gateways, we are building a robust, secure infrastructure that keeps Europe connected with seamless mobile broadband.”

The project is part of Vodafone’s wider strategy to use AI and automation at scale to improve network performance and customer experience.

The system, called Rapid RIC, is designed to make Vodafone’s networks more reliable, energy-efficient and responsive to customer needs. It will enable engineers to launch new network apps, known as “rApps,” in weeks rather than months.

These apps can automatically spot and fix network problems, boost signal strength in busy areas, and switch off unused parts of the network to save power without manual upgrades to masts. Customers should see faster connections, fewer dropouts, and more consistent coverage, particularly in rural or high-demand areas.

The new platform is expected to go live early next year across Vodafone’s European markets. It uses Open RANtechnology, which allows operators to mix and match hardware and software from different suppliers.

Rapid RIC uses Generative AI to automatically create software code. Vodafone says this will cut development times by up to 70 per cent and reduce costs. An AI simulator will also test the apps to ensure they run smoothly.

The platform could eventually be offered to other telecoms companies. At launch, Vodafone plans to introduce two apps: One is an energy-saving app that automatically powers down unused network connections and reactivates them when needed. The other is a  performance-boosting app that fine-tunes signal settings for improved coverage.

The handset, developed by HMD  in partnership with online safety specialists SafeToNet, is aimed at the “first phone” market for children. It launches today (20 August) in Vodafone retail and online channels, priced from £33 a month with a £30 upfront cost.

HMD is pitching Fuse as a new category of smartphone designed to give parents peace of mind while still allowing retailers and operators to serve a high-demand segment. Surveys show 85 per cent of parents plan to buy their child a phone before secondary school, but nearly half are worried about exposure to explicit content.

The Fuseccmbines “HarmBlock” AI, which prevents nude content being captured or viewed across all apps and livestreams, with built-in parental controls covering app access, screen time, location tracking, and safe-zone alerts.

James Robinson, VP of HMD Family, said: “This is the most impactful smartphone launch of the year. Fuse creates an entirely new category that puts child safety at the centre of the experience, giving parents confidence to buy a phone earlier – and giving the channel a brand-new growth driver.”\

HMD says Fuse anticipates families are more likely to stay withi ther HMD brand as children progress from their first phone into full smartphone usage.

SafeToNet founder Richard Pursey described the Fuse as “the first phone that makes pornography incompatible,” while the Internet Watch Foundation and UK government have both welcomed the move.

The Fuse will alsp be available to Three customers. HMD says that more family-focused devices will be brought out soomn

AST SpaceMobile confirmed it has the funding to launch 45 to 60 satellites by 2026. Launches will take place every one to two months during 2025 and 2026. Investors think thus gives the company a clear and achievable rollout plan.

A major driver of investor interest is AST’s partnership with Vodafone. The project aims to deliver direct-to-device satellite mobile broadband across Europe. The service will allow standard smartphones to connect to satellites without extra hardware or software. For mobile operators, it offers a turnkey way to extend coverage beyond terrestrial networks.

Vodafone plans to roll out Europe’s first commercial direct-to-smartphone broadband satellite service in 2025-2026, expanding network coverage to rural and underserved areas across the continent.

Operating from low Earth orbit, Vodafone says its satellite service using AST SpaceMobile’s BlueBird satellites is currently the only service that offers direct mobile broadband from space to standard 4G and 5G smartphones. The service will augment Vodafone’s terrestrial network, offering connectivity in areas where mobile coverage has been impossible.

The Vodafone AST joint venture is based in Luxembourg. It will run ground stations and network operations from there. Vodafone contributes engineering expertise and backhaul capabilities aligned with European sovereignty goals. This supports Europe’s aim for digital independence and near-universal mobile coverage, including in remote areas such as mountains and offshore waters.

Vodafone backed AST early on. It ordered its first Block 1 BlueBird gateway and signed a long-term deal for services through 2034. This will allow Vodafone to offer mobile broadband in places unreachable by traditional networks.