The £15 billion merger between Vodafone and Three in the UK could bring “pro-competitive” benefits if the mobile providers commit to enhancing the country’s infrastructure and avoid early price increases, according to the regulator. Reports Technology News
The Competition and Markets Authority (CMA), which has been reviewing the deal since its announcement last year, signaled that it may approve the merger.
Initially, the CMA expressed concerns that the merger could lead to higher prices for consumers and negatively impact virtual network operators, such as Sky Mobile and Lebara.
However, on Tuesday, the CMA outlined specific commitments from the merged entity that could address these concerns.
One key commitment is a legally binding pledge to invest £11 billion to upgrade the UK’s mobile network infrastructure over the next eight years, with regulatory oversight. According to the CMA, this investment would strengthen competition among network providers in the UK.
Additionally, Vodafone and Three must agree not to increase prices on certain mobile tariffs for at least three years, which would help protect millions of current and prospective customers.
Stuart McIntosh, chair of the CMA’s inquiry group, commented, “We believe this deal has the potential to benefit competition in the UK mobile sector if our concerns are adequately addressed.”
“Our provisional view is that binding commitments combined with short-term protections for consumers and wholesale providers would address our concerns while preserving the benefits of this merger.”
