Vodafone and Three merger: What the experts say after competition watchdog's warning

Despite the UK competition authority voicing new apprehensions about the proposed £15bn amalgamation of Vodafone and Three's UK operations, market experts have indicated that the outcomes of the recent inquiry appear more favourable than anticipated.

The Competition and Markets Authority (CMA), in its preliminary report, highlighted possible price hikes for a multitude of mobile users and cautioned against a potential decline in services, including reduced data offerings, as reported by City AM.

Moreover, the regulator pinpointed "particular concerns" regarding the merger's impact on vulnerable consumers, who might encounter increased costs or be compelled to contribute towards network enhancements "they do not value."

Countering these issues, Vodafone's CEO Margherita Della Valle stated: "We do not agree that prices will go up. From the outset, we have been very clear that the merger will not affect our pricing strategy and that all social tariffs will continue to protect the vulnerable."

Della Valle also refuted the notion that the transaction would adversely influence the wholesale market, noting that 90 per cent of UK MVNOs depend on either VMO2 or BT/EE for their wholesale needs.

She further argued: "A combined stronger network would significantly boost competition in the wholesale market by giving MVNOs more choice and better quality from three scaled wholesale network providers,".

Vodafone and Three initially announced their merger last summer, promoting it as a game-changing move that would enhance competition, improve service quality, and inject £11bn into the rollout of 5G networks across the UK.

The British government gave the merger the go-ahead in May, dismissing national security concerns linked to CK Hutchison, the Hong Kong-based owner of Three.

However, approval from the Competition and Markets Authority (CMA) is still pending, with regulators examining whether the merger, which would decrease the number of major UK operators from four to three, could harm competition.

The CMA also expressed concerns that the merger could make it more difficult for smaller mobile operators like Sky Mobile and Lyca Mobile to offer competitive deals to customers. They also