A proposed £15 billion merger between Vodafone and Three UK aims to create the largest mobile phone operator in the country, potentially impacting up to 1 million Three customers who may struggle to find cheaper alternatives, according to the Unite union. The union is urging the Competition and Markets Authority (CMA) to block the merger, which would consolidate 27 million customers under one provider, surpassing current leaders EE and Virgin Media O2.
Unite expresses concerns about possible job losses and increased prices, particularly for Three customers who may face higher costs. Research from Survation indicates that 39% of Three users would consider switching operators post-merger, with 9% inclined to move to Vodafone. However, since Three is currently the lowest-priced mobile network in the UK, the merger could reduce competition, limiting these customers’ options for affordable plans.
Additionally, Unite’s findings reveal that 23% of Three customers earning under £20,000 annually could struggle to pay their mobile bills if prices rise by £6 to £10 a month after the merger. The union argues that approving the merger would likely lead to higher costs for UK consumers, benefiting company profits and shareholders rather than fostering a competitive market.
Vodafone and Three assert that the merger is necessary to address the unsustainability of the current market and to enable greater investment in 5G networks, pledging £11 billion over the next decade for network upgrades and expansions if the merger proceeds. The CMA has extended the deadline for its final report to December 7, as it continues to assess the merger’s potential effects on competition, pricing, and investment in UK mobile networks, leaving the future of the Vodafone-Three merger uncertain.
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