Following the completion of its monumental £15 billion merger with º£½ÇÊÓƵ competitor Three, Vodafone, a FTSE 100 heavyweight, has pledged to invest up to £1.3 billion in network infrastructure over the coming year.
This capital expenditure commitment forms part of a broader promise by the newly formed entity, VodafoneThree, which is poised to become the º£½ÇÊÓƵ's largest mobile operator, to invest £11 billion over the next ten years, as reported by .
The merged business, with Vodafone and Chinese conglomerate CK Hutchison holding 51% and 49% stakes respectively, will receive £800 million in equity from its parent companies to support working capital needs.
An initial injection of £600 million is slated for immediate release, followed by an additional £200 million in the first quarter of the subsequent year.
VodafoneThree intends to utilise this funding to expedite its network rollout, aiming to establish "one of Europe's most advanced" 5G networks.
Vodafone deal 'creates a new force in º£½ÇÊÓƵ mobile'
Vodafone's CEO, Margherita Della Valle, hailed the merger, saying: "The merger will create a new force in º£½ÇÊÓƵ mobile, transform the country's digital infrastructure and propel the º£½ÇÊÓƵ 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 combined entity's net debt is anticipated to stand at £6 billion post-merger, resulting in an increase of £1.7 billion to Vodafone Group's net debt. Vodafone, recently transitioning to a loss due to an impairment charge in its latest financial results, anticipates the merge to realise £700m a year in cost and capital expenditure synergies by the fifth year post-completion.
The company wraps up an extensive reorganisation of its continental businesses with the consolidation, which is followed by the sale of Vodafone Italy to Swisscom for €8bn, finalised in January, and offloading Vodafone Spain to Zegona Communications for £4.4bn in May of the preceding year.
The question of whether the merged firm will carry forward either the Vodafone or Three brand, or venture into fresh branding territory, remains open.
At a press conference last month, CEO Della Valle sidestepped enquiries about the branding strategy, remarking to journalists: "We are well-used to managing multi-brand environments."
The green light for Vodafone's £15bn merger proposal was signalled by the Competition and Markets Authority in December of the previous year.
Stuart McIntosh, head of the CMA's investigation team, expressed: "After extensive feedback, we believe the merger is likely to boost competition in the º£½ÇÊÓƵ mobile sector and should be allowed to proceed, but only if Vodafone and Three agree to implement our proposed measures."
Shares in the telecommunications giant have enjoyed an upswing of roughly 12 per cent since the turn of the year.
