Vodafone has pledged to invest more than £1 billion to expand network coverage next year as it seals a £16.5 billion merger with former mobile rival Trive Trive.

The new business, called Vodafonethree, will invest £11 billion in coverage over the next decade, in line with commitments consistent with UK competition regulators last year. The company said on Monday it would invest £1.3 billion in capital expenditure projects in its first year.

The merger between Vodafone's domestic business and the three UK businesses was first announced in 2023, the largest restructuring in the UK's telecom industry in years. Together with BT/EE and Virgin Media 02, it reduces the four major network operators to three.

The merger of the UK's third-largest and fourth-largest operators will build a network with more than 27 million subscribers.

While the Competition and Markets Authority (CMA) initially warned that millions of customers could face higher bills when the merger was combined, the deal was green light last year but had a series of legally binding commitments.

Regulators stipulate that new companies must spend £11 billion to upgrade their consolidated network and promise to retain certain existing mobile tariffs and data plans for at least three years, including sub-brands. It also said the company must commit to upgrade 5G coverage and provide short-term customer protection to prevent price increases.

The United Union warns that the merger could result in up to 1,600 job losses. However, Vodafone rejected the figure and said the deal will eventually lead to more jobs.

Vodafonethree said the first year of its capital expenditure project will involve the introduction of technology to enable the “Multi-Agency Core Network (MOCN) feature” that allows customers to access other carriers’ networks.

Vodafone Group owns 51% of the new company, while CK Hutchinson, the three formerly only owners of the UK, own 49%.

Vodafone CEO Margherita Della Valle said the merger would create "new power" on the UK's move and "change the country's digital infrastructure".

She added: “We are now eager to start our network builds and quickly provide our customers with higher coverage and excellent network quality. The deal completed the reinvention of Vodafone Europe and with this transition period, we now have a full attitude towards future growth.”

Della Vale became CEO in 2023 and his mission is to restore the fate of the FTSE 100 company. Now, she has won three big deals in a highly regulated industry in less than two years. The Vodafonethree merger follows the sale of two struggling businesses in Spain and Italy.