Vodafone-Three merger could be “pro-competitive” for UK
The merger between Vodafone and Three could be given the green light after the regulator said that it might be “pro-competitive” for the mobile sector in the UK.
The Competition and Markets Authority (CMA) was previously reticent about approving the deal after citing concerns about higher prices and reduced competition.
The merger would create the biggest mobile network in the country with 27 million customers.
However, the regulator now believes that it might be beneficial – but only if the two companies involved make concessions.
The CMA wants Vodafone and Three to commit to a three-year price freeze for existing mobile tariffs and data plans and supercharge its ultrafast 5G tech rollout.
The companies believe that the provisions now provide a “path to final clearance”.
The deal was first agreed in summer last year, but it looked like it may fall through after initial criticism from the CMA.
Stuart Murdoch, who works for the CMA, believes that the deal could be a net win for the mobile industry if the concerns are addressed.
He said: “We anticipate in the longer term that the significant commitment to upgrade the merged companies network over the next 10 years or so will ultimately create a competitive environment that will maintain the competition we’ve seen in mobile in recent years.”
Industry analyst Paolo Pescatore now expects the deal to go through, with the newly merged company in a better position to take on EE and O2.
The CMA has now asked for responses to the remedies ahead of a deadline in December.
A final decision on the merger will then be made.