The merger between Vodafone Group PLC and Three UK has received clearance to form the country’s largest mobile operator, provided the companies cap prices and commit to significant 5G infrastructure investments, Britain’s Competition and Markets Authority (CMA) announced Thursday.
The deal, which will create a telecoms giant serving 27 million customers, hinges on legally binding commitments to invest billions of pounds into a unified 5G network and cap certain mobile tariffs for at least three years.
The CMA acknowledged that without these interventions, the merger could result in a “substantial lessening of competition” in the market. Failure to meet the proposed terms could see the merger prohibited, the regulator warned.
A Boost for Competition or a Risk?
Stuart McIntosh, chair of the independent inquiry group investigating the deal, expressed confidence in the merger’s potential benefits.
“This merger is likely to enhance competition in the U.K.’s mobile phone sector if Vodafone and Three adhere to their proposed remedies,” McIntosh said.
