About a year and a half ago, back in June 2023, the UK’s Vodafone and Three announced their intention to merge, thus creating the UK’s biggest mobile network operator. This merger has today finally been cleared by the UK’s Competition and Markets Authority, with some legally binding commitments.
For three years, the new operator will have certain mobile tariffs capped and will have to give virtual mobile providers (MVNOs) access to pre-set wholesale prices and contract terms, in order not to negatively impact competition in the space.
The new operator will also have to “invest billions” to roll out a “combined 5G network across the UK” over the next eight years. These commitments are said to resolve the CMA’s competition concerns.
The CMA concluded that “by significantly improving the quality of the combined network, the full implementation of this plan would boost competition between the mobile network operators in the long term, benefiting millions of people who rely on mobile services”, even though this merger effectively takes one operator off the market thus literally negatively impacting competition in the space.
The merged company will be required to publish an annual report setting out its progress on the implementation of the network plan. The CMA will monitor and enforce the protections relating to consumer tariffs and wholesale terms, while the network commitment will be overseen by both the CMA and Ofcom, the UK’s communications regulator.