Vodafone and Three Merger Faces Scrutiny Over Potential Price Hikes

Vodafone's $19 billion merger with Three UK is under scrutiny by Britain's Competition and Markets Authority (CMA) due to concerns it could raise mobile bills and reduce competition. Nevertheless, the deal might enhance network quality and expedite 5G rollout. CMA's final decision is expected in December.

Vodafone's $19 billion merger with Three UK is under the microscope, with Britain's competition regulator cautioning that it could elevate mobile bills for millions and decrease the number of networks from four to three.

Despite the Competition and Markets Authority's (CMA) reservations, the deal could potentially enhance network quality and hasten the rollout of next-gen 5G technology. The CMA is set to review possible solutions to these issues before reaching a final verdict in December.

The merger, involving Vodafone and Three UK, owned by Hong Kong's CK Hutchison, challenges the CMA's stance that maintaining four networks is essential for low prices. Both companies argue the merger would forge a robust third player, better equipped to compete with major providers BT's EE and Virgin Media O2. The CMA's inquiry chair, Stuart McIntosh, has indicated willingness to consider how the companies might address the regulatory concerns while ensuring future network investment.

(With inputs from agencies.)