CMA set to approve Vodafone–Three merger

Network upgrades and price protections have been proposed by the CMA to keep the market competitive 

The Competition and Markets Authority has given the Vodafone–Three merger the provisional green light, if both companies commit to major network upgrades and customer protections, according to a new press released published this week. 

Back in September, the CMA had released its provisional findings, which raised concerns that the deal could lead to higher prices and reduced service quality for millions of UK mobile customers. It also warned of the impact on MVNOs (Mobile Virtual Network Operators) who rely on Vodafone and Three’s networks, with Sky  Mobile and Lyca Mobile being named specifically. However, the CMA now believes that, with a legally binding commitment from Vodafone and Three to invest in the UK’s mobile network, including a significant expansion of 5G, these issues could be addressed. 

“We’ve carefully examined the potential effects of this merger. While it could improve network quality, the potential cost to customers and smaller providers is significant,” said the CMA in a statement. “We will now work to address these concerns while ensuring future network investments.” 

Key conditions would require Vodafone and Three to improve network quality across the UK over the next eight years, maintain certain mobile plans for at least three years, and offer competitive terms to smaller network providers. According to CMA inquiry leader Stuart McIntosh, these steps could encourage competition in the long term while protecting customers during the integration period. 

“We believe this deal has the potential to be pro-competitive for the UK mobile sector if our concerns are addressed,” said Stuart McIntosh, chair of the inquiry group leading the investigation in a press release. 

“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,” he continued. 

The CMA is seeking public feedback on these proposed measures, with a final decision due by 7th December.