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The CMA expressed concerns that consumers could end up paying more for improvements in network quality that may not be valued by all. In addition to the potential impact on retail customers, the merger could also affect wholesale telecoms providers, such as Lyca Mobile, Sky Mobile, and Lebara, which rely on major networks to offer their services. The reduction in the number of network operators from four to three could make it harder for these smaller providers to negotiate competitive terms.
Stuart McIntosh, chair of the inquiry group leading the investigation, stated that the CMA has taken a thorough approach, balancing the companies’ promises to invest in network quality and 5G connectivity against the potential costs to customers and competition. He emphasized that the next step will involve reviewing how Vodafone and Three might address these concerns while ensuring any benefits from the merger, such as future network investments, are realized.
Vodafone has responded by calling the merger a "once-in-a-generation opportunity" to improve the UK’s digital infrastructure, with plans for significant investment in the country. Vodafone’s CEO, Margherita Della Valle, described the merger as a key driver of change, aimed at transforming the nation’s connectivity and bridging the digital divide. She highlighted that strong network connectivity is essential for many aspects of daily life and is crucial for the future growth of industries such as AI, as well as enhancing productivity and public sector services.
The final decision from the CMA is expected on December 7, with responses to its initial findings being accepted until October 4. Both Vodafone and Three will now need to work on addressing the regulator’s concerns as the review process continues.
