Vodafone and Three are facing scrutiny from the UK’s Competition and Markets Authority (CMA), which has provisionally concluded that their proposed merger could weaken competition, particularly impacting customers least able to afford mobile services. The CMA's ongoing investigation highlights concerns that the merger could lead to higher prices for millions of mobile users and is seeking solutions such as legally binding investment commitments to address these concerns.
Ahmed Essam, Vodafone's UK boss, defended the merger on BBC Radio 4, claiming it would improve network quality for customers and increase competition. He noted, 'We've made a significant commitment to an 11bn investment...and we undertake a commitment to deploy this.' Despite this, the CMA remains cautious, asserting that the alleged benefits may be overstated.
Kester Mann of CCS Insight remarked on the CMA's report, indicating that while the regulator is skeptical about claims of enhanced network quality post-merger, it has left the door open for negotiations. He stated, 'Vodafone and Three should be encouraged by the tone of the CMA's report...which appears more open to the merger than I was expecting.'
Rocio Concha from consumer group Which? expressed a more skeptical view, asserting that the CMA's findings create a challenging landscape for the merger to advance. She noted, 'It is clear from those findings that the planned merger has set a high bar for the merger to proceed.'
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