Why is the Three network cheaper than other operators?

Three tend to be less expensive than other main networks

If you’ve looked around for a cheap SIM only plan, you’ve likely seen that Three are usually the least expensive of the main four networks. And they can sometimes challenge budget providers on certain deals.

When it comes to phone contracts, Three tend to be on par with O2 and a bit cheaper than Vodafone and EE. Their usage plans (mins, text, data) are the same as their SIM only ones which helps keep the overall price down.

Compare current SIM only deals on Three

But when things are cheaper, people start to wonder if they’re getting some kind of inferior experience. In this guide, we look at why Three cost less than other main networks. Is anything worse? What’s better?

Useful link: Our guide to the budget providers on Three’s network

They’ve always been a challenger to the other networks

Three were set up in 2003, a good while after the 3x other main UK networks. This has meant they’ve always been the fourth player in a crowded market, playing catch up. So they’ve always had to act a bit differently.

Their physical mobile network historically was smaller than Vodafone/EE/O2’s. Though nowadays there’s little difference (check coverage for yourself here), Three have always had to persuade people a little harder to join.

They used to do this with extra benefits, like including worldwide roaming or unlimited streaming data. Those have largely disappeared while Three have invested heavily in 5G expansion. But lower prices have remained.

Best SIM only deals currently on Three

So we’d say it’s a deliberate commercial decision from Three to be the cheapest main network. They don’t spend big money on branding activity. They’re arguably the least well-known big provider and use price as one way to attract customers.

Useful link: Three’s Big Network Build project

Their more-modern network is cheaper to maintain

Because Three were set up after all the other main networks (and their predecessors), they’ve never had older parts of a mobile network like GSM or 2G transmitters. Their competitors EE/Vodafone/O2 all do.

So Three don’t have the expense of keeping up parts of their infrastructure that have been superseded by recent innovations, such as 4G and 5G. Nor the expense of stripping old technology out since the phase out of 2G.

Best 5G SIM only plans on Three currently

They will be phasing out their 3G, like every network. But that’s still less of an undertaking than taking out the decades old equipment their competitors are doing.

All that means we expect Three have lower operational costs for running their networks, which they can pass onto consumers via lower basic prices for their plans.

Useful link: Read Three’s guide to their network

They don’t have as many stores as the others

The last way that Three keep their costs down is by not paying for loads of stores and overheads like the other networks do. They claim to have 293 stores around the country, while the others all have over 400.

That saves a lot of money, whilst giving their smaller customer base a way to come into a store if they need help. It’s impressive they can keep prices so low whilst still giving in-person help to their customers.

One negative part of this is that their customer service record is a bit lower than EE and Vodafone’s, with 4 complaints per 100,000 customers according to Ofcom.

But Ofcom show that Three’s customers feel like they get value for money more often than the other main networks. That’s a good sign that Three can keep up a good overall experience without overcharging their users.

Useful link: See Ofcom’s report about mobile customer experiences