Vodafone Group CEO Margherita Della Valle (pictured) maintained pressure on the UK to approve a merger of its local unit with 3 UK, arguing a newly appointed government will fall short of 5G coverage targets if it does not allow the tie-up, The Guardian reported.

Della Valle told the newspaper the UK could miss out on the full potential of AI without solid communications networks, arguing the recently installed Labour Party government would also fall short of a key election pledge to provide nationwide 5G coverage by 2030 if the merger was blocked.

The Vodafone chief hammered home the importance of the telecoms sector on the broader consumer and industrial markets, telling The Guardian it has a “critical” role to play in broader fiscal development.

She warned Vodafone would not have the ability to invest in its infrastructure without the merger, arguing the UK must take action to bring itself back on-par with other nations.

The Guardian noted Vodafone announced lay-offs in 2023, apparently bearing-out Della Valle’s comments on its ability to deploy 5G.

While bosses at 3 and Vodafone are obviously keen to highlight potential benefits of the merger, rival BT Group argues the deal would harm investment: it told the UK’s Competition and Markets Authority the combination would lessen competition, lead to price hikes and reduce the incentive to upgrade networks.

The country’s other operator, Virgin Media O2 looks to have been offered assurances around spectrum after cutting a deal with Vodafone earlier this month.

Government goals
Digital plans certainly permeate many of the commitments the new government made when taking office this month.

It aims to employ digital pay-as-you-go and season tickets as part of a bill to reform rail travel, and promote the sharing of data between regulators and relevant authorities in product supply chains, for example.

There is also a specific digital information and smart data bill which targets improving public services, updating relevant regulations and beefing up data protection, along with a self-explanatory cybersecurity and resilience bill.