Vodafone and Three have finally merged, in a £16.5 billion deal, following approval from the CMA, who launched a months-long investigation in which it sought to make sure that the merger wouldn’t lead to weakened competition and result in other issues. Now the CMA has approved – pending Vodafone and Three signing commitments to roll out a combined 5G network across the UK.
Both Vodafone and Three have said they will invest £11 billion to create an advanced 5G network, which it appears the CMA will hold the operators to.
Other stipulations of the approval are that both network operators cap mobile tariffs and data plans for three years to protect millions of customers who are brought together under the merger, and offer pre-set prices and contract terms for wholesale services. Around 27 million customers are now together under the banner of Vodafone and Three.
“It’s crucial this merger doesn’t harm competition, which is why we’ve spent time considering how it could impact the telecoms market,” stated Stuart McIntosh, chair of the independent inquiry group who led the investigation.
“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.”
Vodafone’s Chief Executive Margherita Della Valle told the BBC that the deal would be self-funded, which meant it wouldn’t incur costs from public funding or create additional costs for customers.
In an announcement put out about the approval, 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.”
Prior to the deal, there were four mobile network operators in the UK: Vodafone, O2, EE and Three, which will now shrink to three.
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