A £15bn merger between two of the UK’s biggest mobile networks could get the green light – if they stick to their commitments to invest in the country’s infrastructure, the competition watchdog said.
The Competition and Markets Authority (CMA) said the merger of Vodafone and Three has “the potential to be pro-competitive in the UK mobile sector”.
Announced last yearThe proposed £15 billion merger would bring 27 million customers together under one provider.
The regulatory body warned earlier that tens of millions of mobile phone users You could end up paying more If the merger goes ahead.
However, the two groups have recently drawn up plans to protect consumer prices and boost investment in the network.
The CMA has now drawn up a list of “remedies” required for the deal to go ahead, including urging networks to commit to a freeze on some tariffs and data plans for at least three years to protect customers from short-term price rises in early 2019. Years of network plan .
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“We believe this deal has the potential to be pro-competitive for the UK mobile sector if our concerns are addressed,” Stuart McIntosh, head of the investigative group leading the investigation, said on Tuesday.
“Our interim view is that binding commitments coupled with short-term protections for consumers and wholesale providers would address our concerns while preserving the benefits of this merger.
“A legally binding network commitment would enhance competition in the long term, and additional measures would protect consumers and wholesale customers as network upgrades are implemented.”
Today’s announcement is temporary, and a final decision is scheduled to be made before December 7. The inquiry group is calling for comments on today’s announcement by 5pm on 12 November.
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The CMA has also published a list of potential solutions – called remedies – to the problems it has identified with the merger.
If the networks want to go ahead with the merger, the watchdog requires it Vodafone And three to:
• Provide a joint network plan to define network upgrades and improvements over an eight-year period.
• Commitment to retain some current tariff costs and data plans for at least three years to protect customers from price increases.
• Commitment to pre-agreed prices and contract terms so that mobile virtual network operators – mobile service providers that do not own the networks they operate on – can obtain competitive wholesale deals.
In response to the watchdog’s announcement, company spokespersons said: “The merger will be a catalyst for positive change.
“It will bring huge benefits to businesses and consumers across the UK, and will bring advanced 5G technology to every school and hospital across the country.
“The merger is also closely aligned with the government’s mission to drive growth and encourage more private investment in the UK.”
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Earlier this year, CEO of the three Hit ‘abysmal’ 5G speeds in the UK And availability as he urged regulators to approve the company’s merger with Vodafone.
“His company’s cash flows have been negative since 2020 and our costs have almost doubled in five years, meaning investment in the network is not sustainable,” Robert Finnegan noted.
“UK mobile networks are ranked 22nd out of 25 in Europe 5G speeds and availabilityHe added: “In light of the dysfunctional structure of the market, which deprives us of the ability to invest sustainably to fix this situation.”