When you buy through affiliate links in our content, we may earn a commission at no extra cost to you. Learn 
The UK’s CMA has provisionally ruled that the proposed $19 billion merger between telecom giants Three and Vodafone could raise prices in mobile network services.
Released on September 13, the Competition and Markets Authority (CMA) ruling suggests that the merger could diminish service quality for millions of mobile customers across the UK.
This includes potential reductions in data packages and service options, which could adversely impact customers, particularly those struggling financially or forced to pay more for network improvements they don’t value.
We’ve provisionally found that #Vodafone’s planned merger with #Three could lead to tens of millions of mobile customers in the UK having to pay more.
Ashleye Gunn, CMA Inquiry Group member, explains more ⬇️
Find out more: https://t.co/liOt14nX54 pic.twitter.com/zE0Zeuglxb
— Competition & Markets Authority (@CMAgovUK) September 13, 2024
The CMA’s report raises concerns about how the proposed merger between Three and Vodafone could affect Mobile Virtual Network Operators (MVNOs) such as Sky Mobile, Lebara, and Lyca Mobile.
MVNOs do not own their network infrastructure. Instead, they lease network access from existing mobile network operators to offer services.
The U.K. has four major network operators – EE, Vodafone, Three, and O2. Merging Three and Vodafone would reduce the number of major network operators from four to three, thus leading to less competition among network providers.
As a result, MVNOs might find it harder to negotiate favorable wholesale deals for network access. Hence, the CMA believes a merger could make it more expensive for MVNOs to operate and offer competitive pricing to their retail customers.
Despite the potential benefits touted by Vodafone and Three, including improvements to mobile network quality and accelerated deployment of next-generation 5G services, the CMA has found these claims to be overstated.
The regulator doubts the merged entity’s commitment to follow through on its proposed investment plans, which were first made public on June 14, 2023.
As a result, the CMA has provisionally concluded that the merger would substantially lessen competition in both the retail and wholesale mobile markets in the UK.
The authority also announced that a final decision on the merger is expected by December 7, 2024, following further investigation and consideration of possible remedies.
