Donald Connor’s Post

[Meanwhile in UK - please do not blame #vestager now] An in-depth investigation by the Competition and Markets Authority (#CMA) has provisionally found competition concerns over #Vodafone’s planned #merger with #Three in the UK. According to CMA, the merger would lead to price increases for tens of millions of mobile customers, or see customers get a reduced service such as smaller data packages in their contracts. The CMA has particular concerns that higher bills or reduced services would negatively affect those customers least able to afford mobile services as well as those who might have to pay more for improvements in network quality they do not value. The CMA has also provisionally found that the merger would negatively impact ‘wholesale’ telecoms customers – such MVNOs. The merger would reduce the number of network operators from 4 to 3 making it more difficult for MVNOs to secure competitive terms, restricting their ability to offer the best deals to retail customers. CMA also found that the merger, by integrating the Vodafone and Three networks, could improve the quality of mobile networks and bring forward the deployment of next generation 5G networks and services, as claimed by Vodafone and Three. But the CMA currently considers that these claims are overstated, and that the merged firm would not necessarily have the incentive to follow through on its proposed investment programme after the merger. As a result, the CMA has provisionally concluded that the merger would lead to a substantial lessening of competition in the UK – in both retail and wholesale mobile markets. The merger may be either prohibited or made subject to remedies. A potential remedy could consist in a kind of MVNO regulated access

VODAFONE-THREE MERGER FACES CMA SCRUTINY OVER POTENTIAL PRICE INCREASES The UK competition watchdog, CMA, has flagged that the planned £16.5 billion merger between Vodafone and Three UK might lead to higher prices for millions of customers, unless changes are made. The CMA’s initial findings from their investigation suggest the merger could raise bills or reduce services, like smaller data packages, which would hit customers, especially those struggling financially. Vodafone and Three disagree and say they’re committed to working with the CMA to get the deal approved. The watchdog suggested a few fixes, such as making sure Vodafone and Three stick to investment promises under regulatory oversight, or possibly selling off parts of their mobile networks to help keep competition alive. The CMA is still looking at whether these changes could actually work and will make a final decision by December 7. The deal would create the UK’s biggest mobile operator, reducing the number of major players from four to three. The companies argue this would boost 5G rollout and improve network quality, but the CMA is worried it could hurt competition and drive up prices for customers and mobile virtual network operators (MVNOs) like Sky Mobile and Lebara. Vodafone’s CEO said they’re happy to be monitored on their investment plans, while Three UK's CEO believes the current market isn’t competitive enough and says they’ll work to prove the benefits of the merger. However, there are concerns that one possible remedy—selling off spectrum—could interfere with their plans to improve the network. A competition lawyer noted that it’s rare for the CMA to change its stance after provisional findings, so the focus is now on how effective any proposed remedies might be. December 7 is the magic day! #mobile #consolidation #mvnos #vodafone #three

The CMA's initial findings into the Vodafone/3 merger have just been released. Here are my initial thoughts. At first glance, the CMA’s concerns make for uncomfortable reading for Vodafone and Three as they battle for approval for their crucial merger.   However, many of these had been outlined previously, notably the potential for higher prices and likely impact on the wholesale market. The main knockback to the merging parties is that the CMA considers claims of superior network quality post integration to be “overstated”.   The CMA offers a potential path to approval through a range of remedies. Crucially, it appears willing to consider “behavioural remedies” such as enhanced network access for virtual providers or safeguards for retail customers.   This is significant as many had feared that more onerous “structural remedies" – such as selling assets or supporting a new entrant – would be required. In this sense, Vodafone and Three should be encouraged by the tone of the CMA’s report which appears more open to the merger than I was expecting.   The ball is now firmly back in the court of Vodafone and Three. They need to quickly assess these proposals and make further suggestions ahead of a final deadline in early December. The next three months may prove to be the most pivotal in the history of the UK telecoms sector.   I retain my view that approving the merger would be the best outcome for the future of the UK mobile industry. A combined Vodafone and Three can make more efficient investments and push BT and Virgin Media O2 to raise their game too, boosting the market’s long-term connectivity credentials.

The Competition and Markets Authority (CMA) in the UK publishes the responses to the issues statement about the merger between Vodafone UK and Three UK. As expected BT Group expresses the strongest concerns and claims that this merger will create an imbalance in capacity and spectrum as the new entity will have a dominant 61% share in the UK, which is unprecedented in the UK and Europe. https://lnkd.in/d7gvhz3s

Vodafone and Three's long-awaited merger has finally been confirmed today after the UK's Competition and Markets Authority (CMA) approved the deal. The merger is expected to be completed in the first half of next year, and will reduce the number of mobile network operators from four to three. "Today’s approval releases the handbrake on the UK’s telecoms industry, and the increased investment will power the UK to the forefront of European telecommunications," said Vodafone's chief executive officer, Margherita Della Valle. Both operators have committed to investing a combined £11 billion into the merged company’s network across the UK, including the roll-out of 5G. This turned out to be one of the key reasons for the deal being pushed through, noted the CMA. Whether the merger is a good thing for consumers remains to be seen, but the merger continues the consolidation trend in the telecoms industry, in particular in the UK. Here's my round-up of the deal for DatacenterDynamics, including comments from Kester Mann and James Gray. https://bit.ly/3OIcDyo

Two telecommunication giants, Vodafone & Three reject claims by the Competitions Market Authority that their proposed merger weakens competition between mobile networks and could lead to higher user prices. If the merger occurs, they will become the biggest network provider in the UK. AJ Chambers ® #CompetitionLaw #MergersAndAquisitions #Business

The Competition and Markets Authority in the UK has published a summary of its provisional findings on the proposed effective merger of #Vodafone and #Three. It has also published a note on possible remedies. The full provisional findings are scheduled to be published shortly. https://lnkd.in/ewnZZ_KZ This process is of interest to the #Telecoms market across Europe. #5G #CompetitionLaw #MHCLaw #TelecomsRegulation

BT takes aim at Vodafone, 3 UK merger: BT Group issued staunch opposition to a proposed tie-up of Vodafone Group and CK Hutchison’s UK operations, arguing the deal raises serious antitrust concerns, will deter investment and ultimately harm its ability to compete. The UK telecoms giant set out its opposition to the deal in a 40-page document issued to the country’s Competition and Markets Authority (CMA), which had asked industry players to provide feedback on the Vodafone UK, 3 UK deal as part of its phase two investigation into the merger. It has now published ten of those responses, with BT setting out why it believes the tie-up should be blocked by regulators. Among its concerns, BT argued the proposed deal will create a merged entity with a disproportionate share of capacity and spectrum, “unprecedented in the UK and western European mobile markets”. In addition, BT said it agreed with CMA’s phase one conclusion around concerns about lower levels of investment from the merged entity in a UK initiative to boost rural connectivity. The merger, if cleared, “will give rise to a substantial lessening of competition in the UK mobile telecoms market, ultimately resulting in higher prices, poorer network quality and reduced incentives to invest – all to the detriment of UK consumers. Ericsson gives thumbs up On the other side of the argument was Ericsson, which told the CMA the deal could create a more sustainable market structure. “Consolidation is broadly seen as a pivotal measure towards helping operators attain the necessary scale for expanding their future network infrastructure, “ wrote the Swedish vendor. It has been exactly a year since Vodafone announced the £15 billion deal, which cleared a major hurdle last month in being given conditional security clearance by the UK government. However, it still faces CMA’s ongoing competition probe. The watchdog stated the phase two investigation is expected to last until at least 12 October 2024. The post BT takes aim at Vodafone, 3 UK merger appeared first on Mobile World Live. http://dlvr.it/T8GSDX