UK competition regulator the Competition and Markets Authority (CMA) has given the green light for the merger of mobile operators Vodafone UK and Three.
The regulator has stated that the merger should be allowed to proceed if both companies sign binding commitments to invest billions to roll out a combined 5G network across the UK.
Under the merger conditions, UK communications authority Ofcom and CMA would oversee commitments from Vodafone and Three to implement, in full, the merged company’s network plan.
The network commitment would be supported by shorter term customer protections which would require the merged company to cap certain mobile tariffs and offer preset contractual terms to MVNOs, for three years.
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The CMA would have responsibility for monitoring and enforcing the protections relating to consumer tariffs and wholesale terms.
Stuart McIntosh, chair of the independent inquiry group leading the investigation, said it’s crucial the merger doesn’t harm competition, which is why time was spent considering how it could impact the telecoms market.
"Having carefully considered the evidence, as well as the extensive feedback we have received, we believe the merger is likely to boost competition in the UK mobile sector and should be allowed to proceed – but only if Vodafone and Three agree to implement our proposed measures," said McIntosh.
"Both Ofcom and the CMA would oversee the implementation of these legally binding commitments, which would help enhance the UK’s 5G capability whilst preserving effective competition in the sector."