Vodafone and 3 UK Dismiss CMA Findings

Vodafone and 3 UK once again opposed the country’s watchdog’s provisional findings regarding their proposed merger. The companies outlined a belief the tie-up is pro-competitive and outstanding issues can be resolved.

The companies released their response to the Competition and Markets Authority (CMA) findings published last month, as the regulator warned of the potential negative effects for consumers and MVNOs if the floated merger was to go ahead. CMA’s final decision on the merger is not due until 7 December. Vodafone and 3 UK state they disagreed with the CMA’s view, arguing the tie-up is a once-in-a-generation opportunity to transform UK digital infrastructure with £11 billion of network investment.

In addition, the companies claimed to make several additional commitments, which address the issues they have raised around the retail and wholesale segments of the market. These include maintaining tariffs at £10 or below for two years from the completion of the deal for customers on the SMARTY brand and social tariffs on the SMARTY and VOXI For Now brands. In the wholesale market, the combined entity will provide reference offers that encourage MVNOs to access additional network capacity.

Both commitments are on top of a previously stated pledge to invest £11 billion in its network should the merger be approved and extend network benefits to rival VMO2’s direct and MVNO customers. They have also agreed to sell spectrum to VMO2, in a bid to create better alignment of spectrum holdings in the UK. “We continue to constructively engage with the CMA and remain confident that we can work with them to secure approval,” the companies said in a statement.