UK Competition Authority sets terms for Vodafone and Three's £15bn merger

The Competition and Markets Authority (CMA) has proposed a series of investments that could pave the way for the £15bn merger between Vodafone and Three to be finalised.

The watchdog's suggestions include enhancing the merged entity's UK network, including 5G roll-out, and implementing short-term customer protections, as reported by City AM.

This development follows the CMA's previous assertion in September that the planned merger could result in price hikes for millions of mobile users. The CMA also expressed concerns at the time that the deal, first announced last year, might lead to customers receiving reduced services, such as smaller data packages.

The watchdog voiced "particular concerns" about the potential negative impact on customers least able to afford mobile services and those who may have to pay more for network quality improvements they do not value. However, the CMA has now issued a remedies working paper to gather opinions on its proposed package's effectiveness.

The document provisionally concludes that a legally binding commitment from Vodafone and Three to carry out the suggested network integration and investment programme would "significantly improve the quality of the merged company's mobile network, boosting competition between mobile network operators in the long term and benefiting millions of people who rely on mobile services".

The CMA also discovered that short term protections would be necessar