The planned merger of two the country’s biggest phone Company’s could result in higher bills for consumers the watchdog is warning
Vodafone’s $19 billion merger with Three UK could push up bills for millions of mobile customers and impact providers like Sky Mobile by reducing the number of networks from four to three according to the Competitions and Market Authority.
The CMA found that the merger, which combines two of the four mobile network operators in the UK, could lead to a substantial lessening of competition on the basis that mobile customers might face higher prices and a reduction in quality.
There are concerns that higher bills or reduced services would significantly impact those customers least able to afford mobile services amd also significant concerns about the impact of the merger on the large number of consumers who might have to pay more for improvements in network quality that they don’t value
However at the same time, the merger could improve the quality of mobile services and bring forward the deployment of next generation 5G networks and services
Rocio Concha, Which? Director of Policy and Advocacy, said:
“We welcome the CMA’s clear findings. It is clear from those findings that the planned merger between Vodafone and Three could have a negative impact on millions of consumers.
“The two companies are close competitors so the merger is likely to reduce competitive pressure in the market and lead to higher prices.
“The regulator’s finding has set a high bar for the merger to proceed. It will be challenging for the regulator to design and enforce the necessary remedies to address the competition concerns.”
