Uswitch comments on the clearance of Vodafone and Three’s merger by the CMA

Following the clearance of Vodafone and Three’s merger by the CMA, Uswitch telecoms expert Ernest Doku explains what this means for their customers:

“Today the CMA has officially given the green light on the Vodafone and Three merger on the condition that both companies agree to a set of legally binding commitments to invest in its network and help competition. 

“If you’re a Vodafone or Three customer, or a customer of a smaller mobile virtual network operator (MVNO) that uses their infrastructure, this is what to look out for.

1. Price - One of the legally binding terms of the merger set out by the CMA is that selected mobile tariffs and data plans will be capped for three years to protect customers from short-term price rises. This should mean a certain number of consumers will be protected. As details are yet to be released, customers should stay alert to any changes in terms that may come into effect.
2. Connectivity - Both Three and Vodafone have argued that this merger is necessary to provide the improved network that consumers expect, and if they can deliver on this, there is a strong chance that it could give everyday consumers noticeable value. There is also evidence to suggest that merging of both networks will boost competition between network operators in the long term, which will benefit customers with increased choice and better prices. 
3. Smaller virtual networks - Currently six out of the UK’s 12 largest ‘virtual’ networks, known as MVNOs, operate on either Vodafone or Three’s network; Asda Mobile, iD Mobile, Lebara, SMARTY, Talkmobile, VOXI.  Both Vodafone and Three must commit to offering pre-set prices and contract terms for these networks for three years. This should help avoid any short-term increases to wholesale costs - protecting customers on these smaller networks from footing the bill and ensuring these players remain good options for customers. 

ENDS