Deal Could Mean Prices Falling and Better 5G - But Some Fear Bills Could Increase

The UK's biggest mobile operator will form next year, as the competition regulator has cleared the £15 billion merger of Three UK and Vodafone.

The Competition and Markets Authority said the Three and Vodafone deal can go ahead in 2025 if the two firms spend billions investing in 5G infrastructure.

The merger would also see the price of some mobile deals capped for three years - a distinct bonus in a mobile landscape that has seen huge year-on-year bill increases.

"It's crucial this merger doesn't harm competition, which is why we've spent time considering how it could impact the telecoms market," said Stuart McIntosh, chair of the inquiry group leading the CMA investigation. "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."

Will Three and Vodafone Continue to Exist?

Yes, as separate brands. If you are a customer of either firm, there are no announced changes to how your mobile contract will work. After three years, Vodafone will be allowed to buy out the rest of Three, which is currently owned by CK Hutchison Group Telecom Holdings.

Is The Deal Certain?

Not yet, as the CMA has certain requirements it wants the firms to meet first. These include Three and Vodafone investing billions in 5G infrastructure over eight years and capping certain deal prices for three years. If they don't comply, then the deal is off.

Which Deals Will Have Prices Capped?

This has not yet been announced; details will come in a further report from the CMA.

When Will The Deal Complete?

In the first half of 2025.

What Are The Benefits Of The Merger?

"The two companies are currently close competitors so the merger is likely to reduce competitive pressure in the market which could lead to higher prices and lower quality for consumers," said Rocio Concha, Which? director of policy and advocacy.

"No extra costs from public funding and no extra cost for our customers," stated Margherita Della Valle, Vodafone's chief executive on BBC Today programme regarding potential price hikes due to this merger.

How Many Mobile Operators Are Left?

Once completed there will be just four main operators left within United Kingdom: BTEE (British Telecommunications), Virgin Media O₂ alongside merged entity formed between former rivals VODAFONE & THREE respectively!

A number smaller than before however still plenty choice available thanks large variety MVNOs operating under these networks such Giffgaff Tesco Mobile Smarty amongst others ensuring healthy level consumer options remain intact despite consolidation happening at top end industry spectrum overall speaking here today now too!