VODAFONE TO SPEND £1.3BN ON NETWORK AFTER MERGER

FOLLOWING the completion of its monumental £15bn merger with UK competitor Three, Vodafone has pledged to invest up to £1.3bn in network infrastructure over the coming year.

- JON LOWDON and SIMON HUNT

The capital expenditure commitment forms part of a broader promise by the newly-formed entity, Vodafone Three - which is poised to become the UK's largest mobile operator - to invest £11bn over the next ten years.

The merged business, with Vodafone and Chinese conglomerate CK Hutchison holding 51% and 49% stakes respectively, will receive £800m in equity from its parent companies to support working capital needs.

An initial injection of £600m is slated for immediate release, followed by an additional £200m in the first quarter of the subsequent year.