Vodafone and Three are free to merge, says UK competition regulator

The UK's Competition and Markets Authority (CMA) has cleared the merger of Vodafone and Three, reducing the number of mobile networks in the country from four to three. As part of the merger arrangement, the CMA will oversee a commitment made to continue expanding 5G in the country and ensure that some of the tariffs are capped in price for three years.

As many Mobile Virtual Network Operators (MVNO) rely on the networks of these two companies, the CMA says they will get access to pre-set wholesale prices and contract terms—these will be available for three years too.

In September, the CMA found that a merger could lead to higher prices for customers and worse terms for MVNOs. It said that the companies would need to remedy these concerns for the merger to move forward. With the newest proposals, the CMA says the deal is okay to go ahead.

The following items are legally binding commitments that the merger company is required to carry out:

• Delivery of the joint network plan, which sets out the network upgrade, integration, and improvements Vodafone and Three will make to their combined network across the UK over the next 8 years. The group has concluded that by significantly improving the quality of the combined network, the full implementation of this plan would boost competition between the mobile network operators in the long term, benefiting millions of people who rely on mobile services.
• Capping selected mobile tariffs and data plans for 3 years, directly protecting large numbers of Vodafone / Three customers from short-term price rises in the early years of the network plan.
• Offering pre-set prices and contract terms for wholesale services (again for 3 years) to ensure that virtual network providers can obtain competitive terms and conditions as the network plan is rolled out.

The network's commitments will be overseen by both the CMA and Ofcom. Regarding the expansion of its 5G network, the company will have to produce an annual report to outline its progress. The CMA will be the one to ensure consumer tariffs and wholesale terms are stuck over the next three years.

Source: CMA

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