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Highlights:
- Vodafone and Three addressed CMA concerns over their £15 billion merger, pledging to freeze tariffs for value customers and support MVNOs.
- The companies expressed confidence that the merger will benefit consumers despite concerns about potential price hikes and service reduction.
- Due to changes in UK Listing Rules, shareholder approval is not required, leaving the final decision with the CMA by 7 December.
Telecommunications giants Vodafone and Three have responded to the UK Competition and Markets Authority’s (CMA) concerns regarding their proposed £15 billion merger. The two firms, which represent some of the UK's largest mobile operators, expressed confidence in resolving the watchdog’s issues, particularly regarding potential impacts on pricing and service quality for mobile customers.
The CMA had previously raised concerns that the merger could lead to increased prices for millions of mobile users and reduce the diversity of services offered. In response, Vodafone and Three pledged to freeze tariffs at £10 or below for value-focused customers and committed to maintaining social tariffs on their SMARTY and VOXI 4 Now brands. Additionally, they proposed an initiative to encourage mobile virtual network operators (MVNOs), such as Giffgaff, to take advantage of increased network capacity following the merger.
Both companies remain optimistic that these measures will address the concerns raised by the CMA and pave the way for the deal to go through. Vodafone also confirmed that shareholder approval would not be required due to recent changes in the UK Listing Rules, which took effect in July 2024. As a result, the fate of the merger now rests solely with the CMA, which has a deadline of 7 December to make its final decision.
Vodafone and Three believe that the merger will allow for greater network investment and capacity, ultimately benefitting consumers by improving services. However, the CMA’s decision will be crucial in determining whether the deal can move forward without major regulatory obstacles.
