The UK Competition and Markets Authority (CMA) has provisionally indicated that Vodafone’s merger with Three could proceed, provided specific conditions are met to address competition concerns.
The CMA’s Remedies Working Paper outlines a requirement for the merged entity to commit to an extensive 8-year network upgrade across the UK, including a 5G rollout, which would be overseen by the CMA and Ofcom.
The CMA’s initial findings in September suggested the merger might lead to higher prices and limit choices for mobile virtual network operators (MVNOs) like Sky Mobile and iD Mobile. To mitigate these risks, Vodafone and Three have proposed remedies, including preserving current tariffs for three years and offering pre-agreed wholesale prices for MVNOs.
Stuart McIntosh, chair of the inquiry group, stated that these commitments could increase long-term competition while short-term protections would ensure fair pricing. The CMA invites feedback on these proposals by November 12, with a final decision due by December 7.
