VODAFONE AND THREE MERGER COULD LEAD TO HIGHER PRICES – The deal would create the UK’s biggest mobile network
Vodafone’s $19 billion merger with Three UK could push up bills for millions of mobile customers and impact providers like Sky Mobile by reducing the number of networks from four to three, Britain’s competition regulator has said.
However, the Competition and Markets Authority (CMA) also said the deal could improve network quality and speed up the deployment of next generation 5G, adding it would examine solutions to its concerns before making a final decision on the matter in December.
The tie-up, announced 15 months ago between Vodafone and Three UK, owned by Hong Kong’s CK Hutchison has challenged the regulator’s previous stance that four networks are required to keep prices low.
Both operators have argued the deal would create a stronger third player that could compete more effectively with market leaders BT’s EE and Virgin Media O2.
Vodafone and Three said they disagreed with the CMA’s view that the deal raised competition concerns and could lead to price rises for customers.
“This is not a final decision, and we look forward to working with the CMA to secure approval,” they said in a joint statement.
The remedies suggested by the CMA included a commitment on network investment, although it said this might not be sufficient on its own to address all of its concerns.
