A merger between Vodafone and Three could likely equate to becoming the biggest mobile phone operator in the country. This has led to alot of controversy, as well as having to fight for regulatory approval.
The two companies will have to fight to prove that the merge is in fact in the best interest of the public. This will prove difficult due to the media pushing articles over the negative effects of turning the ‘Big Four’ of mobile operators into the ‘Big Three’.
The companies created a website for the proposed merger, including a video of the two heads of either company explaining the improvements to the country overall following the merger.
”The combination of Vodafone UK and Three UK will bring more choice and better value to customers nationwide. With scale to invest, we will create a best-in-class 5G network, supporting the Government’s 5G ambitions, drive digital transformation and create jobs. Through converged offers we will really challenge the two largest operators and, of course, we will continue to support the most vulnerable in society with our social tariffs and our commitment to help 6 million people cross the digital divide by 2025”
Ahmed Essam, Vodafone UK Chief Executive
5G development seems to be a huge piece of leverage to try and sway both the regulator and general public, pledging to invest £11 billion over 10 years to create one of Europe’s ‘most advanced standalone 5G networks’.
The organisation scrutinising the deal will be Britain’s Competition and Markets Authority, an antitrust regulator that last made headlines in April when it blocked Microsoft’s $69 billion acquisition of Activision Blizzard.
The UK ruling is expected to take over a year, so we can only speculate what could happen now.
The Balanced Economy Project released a report on harmful effects of the Vodafone-Three merger, and how it would affect customers. There are also details on how these mergers would increase prices and more than double the average UK phone bill annually.
Considering this report, as well as the general opinion pushed by various news sites, it’s definitely a difficult one to form an opinion on. No matter which way the public opinion goes, however, it’s clear that we’ll be waiting a long time before hearing about this again, let alone the approval or disapproval.