A merger between Vodafone and Three could go ahead if the companies make price promises to consumers and commit to driving the rollout of 5G in the UK, the regulator said.
Competition and Markets Authority (CMA) Said before Creating the country’s largest mobile network could drive up prices and hurt competition.
but Now temporarily ended If the two companies agree to its proposed remedies, these concerns could be addressed and the merger could proceed.
A Vodafone spokesman said both companies would need to look at the CMA’s proposals more carefully but believed first impressions were that it “provides a route to final licences”.
As they have throughout, they insist the deal is in everyone’s interest.
They said: “This will bring significant benefits to businesses and consumers across the UK and will bring advanced 5G to every school and hospital across the country.”
The CMA’s findings are the latest step in its investigation into the merger, which began in January.
In June last year, Vodafone and Three announced plans to merge their UK operations.
Their combined network will have approximately 27 million customers.
Stuart McIntosh, head of the CMA panel investigating the merger, said: “We believe the deal has the potential to benefit competition in the UK mobile industry if our concerns are addressed.”
“We expect that, in the longer term, the significant commitment to upgrade the combined companies’ networks over the next 10 years or so will ultimately create a competitive environment that sustains the competition we have seen in mobile in recent years,” he told TODAY BBC Radio 4 programme.
But he also made it clear that short-term commitments not to raise prices on some existing mobile tariffs and data plans for at least three years were also key to ensuring consumers did not suffer.
The regulator also said maintaining pre-agreed deals or prices with mobile virtual network operators such as Sky Mobile, Lyca and Lebara protects consumers and wholesale customers.
The CMA is seeking a response to its proposed remedies by November 12 and a final decision on the merger by December 7.
