The Strategist

UK regulator identifies risks to competition if Vodafone UK and Three UK merge



09/16/2024 - 07:15



The UK's Competition and Markets Authority (CMA) has determined that the merger between Vodafone UK and Three UK could result in a notable reduction in competition within the UK market.



Donald Trung Quoc Don
Donald Trung Quoc Don
The regulatory body has conducted a thorough examination of the agreement and has tentatively concluded that it would lead to increased costs for tens of millions of mobile phone customers or a decline in service quality, according to their statement.

Furthermore, the consolidation will adversely affect wholesale customers like Lyca Mobile, Sky Mobile, and Lebara, who rely on primary operators. The deal will reduce the number of virtual operators from four to three, making it more challenging for them to negotiate favorable terms.

The CMA stated that while the merging of Vodafone and Three's infrastructure could enhance cellular network quality and speed up the deployment of 5G networks and services, it may not deliver as much as expected.

The regulator will seek input on its initial discoveries and potential solutions for the specified problems and has the authority to prevent the merger.

A final conclusion will be reached by December 7.

source: ft.com