Vodafone’s CEO has reassured that the merger with Three, recently approved by regulators, will not result in higher prices for customers.
The merger, valued at £16.5bn, will establish the largest mobile network in the UK, serving 27 million customers.
The approval is contingent on both companies investing in the UK’s 5G network and applying caps on certain mobile tariffs for three years.
Vodafone’s CEO stated that the deal would be self-funded, without any additional costs borne by customers or public funding.
Although initially cautious, the Competition and Markets Authority (CMA) now believes the merger will enhance competition in the mobile sector.
Legal commitments will ensure continued investment in the UK’s mobile network infrastructure for eight years, with certain tariffs and data plans capped for three years to protect customers from price hikes.
Specific details on the protected price plans will be included in the forthcoming full report on the merger by the CMA.
Industry experts view the merger as a significant milestone in the UK mobile industry, balancing competition and investment.
Consolidation in the UK mobile market has been evident in recent years, with companies like EE, Virgin Media, and O2 merging, leading to job cuts.
Vodafone and Three have pledged to create new jobs through the merger, despite concerns over potential price increases and job losses.