Vodafone and Three merger could increase phone bills for millions, watchdog says

A major merger planned between networks Vodafone and Three UK could lead to higher bills for tens of million of customers or give mobile users a reduced service, the UK’s competition watchdog has found.

The Competition and Markets Authority (CMA) has been investigating the £15 billion deal since it was announced last summer.

The CMA said it had particular concerns that price hikes or reduced service would affect people least able to afford a mobile phone.

It also found the merger of the two firms could improve the quality of mobile networks, but it had concerns the incentive to follow through with planned investments after the merger was uncertain.

Stuart McIntosh, chair of the inquiry group leading the CMA’s investigation, said: “We’ve taken a thorough, considered approach to investigating this merger, weighing up the investment the companies say they will make in enhancing network quality and boosting 5G connectivity against the significant costs to customers and rival virtual networks.”

He said it will now consider how the firms plan on addressing the CMA’s concerns, including by “guaranteeing future network investments”.

Vodafone and Three UK have the opportunity to share solutions before the CMA issues a final report in December.

Vodafone and Three UK have said they disagree with the competition regulator’s concerns, saying it was “time to take off the handbrake on the country’s connectivity”.

Margherita Della Valle, Vodafone’s chief executive, said: “Our merger is a catalyst for change.

“It’s time to take off the handbrake on the country’s connectivity and build the world-class infrastructure the country deserves.

“We are offering a self-funded plan to propel economic growth and address the UK’s digital divide.”

The firms also stressed it was not a final decision and they plan on working with the CMA to secure approval.

Published: 13/09/2024 by Radio NewsHub