Kester Mann, director of consumer and connectivity at CCS Insight said: “Vodafone and Three can tentatively order in the champagne as their blockbuster UK joint venture appeared to take another big step forward following a positive statement from the competition watchdog this morning.”
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Following months of examination, the CMA said that Vodafone and Three's proposed network expansion and customer protection commitments address the agency’s concerns about competition in the UK telecoms sector.
“Approval would mark one of the most significant developments in the history of UK mobile,” Mann added, “heralding the arrival of a new market leader with over 29 million customers.”
The CMA’s approval, however, is conditional. It centres on a comprehensive network investment and customer protection plan designed to ease competition concerns raised in September.
The watchdog’s latest Remedies Working Paper outlines its approach, which it is seeking feedback on before making a final decision by December 7.
In the proposed remedy, Vodafone and Three would be legally bound to implement an extensive network upgrade plan over eight years, overseen by both the CMA and telecom regulator Ofcom.
The plan focuses on expanding the reach of 5G and upgrading the merged company’s network to create a more competitive market in the long term.
Additionally, for the first three years of the network roll-out, the merged company would be required to retain existing tariffs and data plans, shielding customers from potential price rises.
The protections would extend to mobile virtual network operators (MVNOs) such as Sky Mobile and iD Mobile, ensuring they have access to competitive wholesale prices.
Stuart McIntosh, chair of the CMA inquiry group said: “We believe this deal has the potential to be pro-competitive for the UK mobile sector if our concerns are addressed,” McIntosh said.
“Our provisional view is that binding commitments combined with short-term protections for consumers and wholesale providers would address our concerns while preserving the benefits of this merger.”
The deal’s impact on MVNOs has been a particular focus, with the CMA concerned that Vodafone and Three’s combined market power could lead to higher prices or restricted access for providers relying on the networks of larger operators.
Under the proposed remedies, MVNOs would benefit from pre-agreed prices and contract terms that support ongoing competition in the mobile market.
The joint venture, announced last year, would combine Vodafone and Three’s UK operations, serving over 29 million customers and reshaping the market currently dominated by four major players: Vodafone, Three, BT (EE), and Virgin Media O2.
Vodafone’s proposed integration with Three also involves an agreement with Virgin Media O2 to divest certain spectrum assets, ensuring that competition within the telecoms sector remains balanced.
Yet, the CMA’s stance is not without its detractors. Mann points out that not all stakeholders will welcome the merger’s forward momentum, saying, “The watchdog’s statement won’t be welcomed by all.
“BT and Sky Mobile have sternly opposed the deal and are likely to vociferously attempt one final time to have it blocked before the CMA’s final deadline in less than five weeks,” he added.
The CMA’s announcement comes after consulting industry stakeholders and reviewing the impact of the merger on customer pricing, MVNO competition, and 5G coverage expansion. Today’s provisional approval remains open for public feedback until November 12.
The CMA’s final decision, expected by December 7, will determine whether the companies can complete the merger under these proposed conditions.
If approved, Vodafone and Three will be legally required to meet their extensive investment commitments, and Ofcom will oversee the integration process to ensure it benefits consumers, addresses MVNO concerns, and improves the quality of UK mobile networks in the long term.
Keith McAleese, head of TMT at NTT Data UK&I also offered his reaction to the news: “This merger brings the best of both worlds to the table—Vodafone’s strength in B2B solutions and Three’s agility in mobile infrastructure.
"For the UK’s business and consumers, this is a big win. Vodafone’s capabilities, from digital channels to white-label product development, will fast-track new services and capabilities to Three’s customer base, addressing the rising demand for rapid, data-intensive applications.
“This joint venture won’t just lead to improved connectivity; it will also empower enterprises to act on their digital strategies at speed. The telecoms sector hasn’t always been able to roll out B2B services as swiftly as consumer offerings, but the stakes have changed.
"In healthcare, finance, and logistics—industries where connectivity underpins every operation—there’s now potential to integrate reliable 5G at the scale needed for AI, IoT, and edge computing initiatives. This merger’s legally binding commitments should reassure business customers that network quality will be maintained, not just in metropolitan centres but also in rural areas.
“The CMA’s requirements for fair MVNO terms are also crucial. These provisions create space for innovation, allowing MVNOs to serve niche enterprise markets on a secure, scalable network without losing commercial flexibility. The merger sets a new standard for enterprise connectivity and marks a milestone in positioning the UK as a leader in digital infrastructure.”
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