Green light expected for £15bn Vodafone-Tres merger despite fears of higher bills

The £15bn merger of Vodafone and Three UK looks set to go ahead after regulators said customer protection promises made by the operators could ease competition concerns.

The Competition and Markets Authority (CMA) has been investigating the merger between the mobile giants since it was announced last summer, after warning that a “substantial lessening” of competition could lead to higher bills for “millions.” ” from British.

Vodafone and Three UK last month revealed a suite of measures designed to placate the CMA, including a commitment to cap their lowest-cost mobile plans at £10 for two years.

The CMA said it had provisionally found that the company’s commitments, which also include an eight-year investment plan for the rollout of 5G in Britain, “could resolve the competition issues identified in September and allow the merger to go ahead.” “.

He added: “(The) investment program proposed by Vodafone and Three would significantly improve the quality of the merged company’s mobile network, boosting competition between mobile network operators in the long term and benefiting millions of people who depend on mobile services “.

The regulator said Vodafone and Three UK’s delivery of their plans would become a legal obligation, overseen by the CMA and telecoms watchdog Ofcom.

The merged business will also have to commit to “maintaining certain existing mobile tariffs and data plans for at least three years, protecting millions of current and future Vodafone/Tres customers”, and to pre-agreed contractual prices and conditions that guarantee a wholesale more “competitive”. offers.

The regulator will have to make a final decision before the legal deadline of December 7.

Stuart McIntosh, chairman of the CMA research group which is leading the investigation, said: “We believe this deal has the potential to be pro-competitive for the UK mobile sector if our concerns are addressed.”

“Our tentative view is that binding commitments combined with near-term protections for consumers and wholesale suppliers would address our concerns while preserving the benefits of this merger.”