Vodafone and Three merger approved by the CMA
The proposal to merge one of Newbury’s largest employers Vodafone with fellow telecommunications company Three has been approved.
The Competition and Markets Authority (CMA) announced today (Thursday) that it had approved the merger, which will result in the creation of the UK’s largest mobile phone operator.
The CMA approved the merger on the grounds that both companies invest £11bn to roll out a combined 5G network across the country.
Vodafone Group’s CEO Margherita Della Valle said: “Today’s decision creates a new force in the UK’s telecoms market and unlocks the investment needed to build the network infrastructure the country deserves.
“Consumers and businesses will enjoy wider coverage, faster speeds and better-quality connections across the UK, as we build the biggest and best network in our home market.
“Today’s approval releases the handbrake on the UK’s telecoms industry, and the increased investment will power the UK to the forefront of European telecommunications.”
Other requirements set out by the CMA include capping selected mobile tariffs and data plans for three years in order to protect Vodafone and Three customers from short-term price rises in the early years of the network plan, as well as offering pre-set prices and contract terms for wholesale services (again for three years) to ensure that virtual network providers can obtain competitive terms and conditions as the network plan is rolled out.
Stuart McIntosh, chair of the independent inquiry group that is leading the investigation for the CMA, said: “It’s crucial this merger doesn’t harm competition, which is why we’ve spent time considering how it could impact the telecoms market.
“Having carefully considered the evidence, as well as the extensive feedback we have received, we believe the merger is likely to boost competition in the UK mobile sector and should be allowed to proceed – but only if Vodafone and Three agree to implement our proposed measures.
“Both Ofcom and the CMA would oversee the implementation of these legally-binding commitments, which would help enhance the UK’s 5G capability whilst preserving effective competition in the sector.”
