The UK’s mobile phone sector may be about to undergo a huge upheaval, with telecom giants Vodafone and Three announcing their intention to merge.
If the merger goes through, it will create the country’s largest network, with Vodafone owning 51% of the new company and having the option to buy the remainder of Three’s stake in the future. They both announced intentions to invest £11 billion in the UK over the next ten years in order to build one of Europe’s most modern standalone 5G networks.
Enhancing Wholesale Partnerships and Competition
The merger of Vodafone and Three would provide MVNOs more options for wholesale partnerships, increasing flexibility and maybe fostering pricing competition at the retail level. The majority of MVNO consumers currently rely on the BT EE or Virgin Media-O2 networks to connect, but the merger would provide MVNOs another alternative, perhaps resulting in better services and prices for customers.
Customer Concerns and Price Hikes
Some observers are worried that the proposed merger will lessen competition and increase consumer prices. Customers are already suffering from in-contract pricing rises, so there is concern about how a merger could affect household bills.
Ernest Doku, a telecoms experts at Uswitch.com Mobiles, emphasized the importance of preventing further price hikes as a result of the merger and urged the companies to give customers’ affordability and transparency first priority.
The Regulatory Hurdle
The UK’s competition watchdog, the competition and Markets Authority (CMA), has to approve the merger before it can move further. Taking into account variables like competition, pricing, and potential advantages of the proposed merger, the CMA will assess how the agreement will affect the interests of people across the nation. As proof that the merger will increase 5G availability nationally, Vodafone and Three will probably point to the committed £11 billion infrastructure investment.
Source: Pocket-lint
