While the approval is accompanied by legally binding commitments, the merger has sparked varied reactions across the industry.
The combined entity has pledged a £11 billion investment in 5G infrastructure, a key commitment that has the potential to transform connectivity for up to 50 million people across the UK.
However, experts warn that capital expenditure alone won’t suffice to deliver the promised benefits.
Rafael González, chief marketing officer at MedUX, stresses the importance of targeted investments:
“While the Vodafone/Three merger includes commitments to invest in 5G, general investment alone may not be sufficient to improve the experience for UK citizens and enterprises.
“Capital expenditure should specifically focus on enhancing 5G coverage, availability, reliability, and performance.
“Considering factors like spectrum bands and minimum required speeds is crucial for contributing to positive social welfare and improving network quality.”
The CMA’s decision is expected to have long-term implications. Freshwave CEO Simon Frumkin sees the merger as an opportunity for the UK to regain its competitive edge: “The last telecoms merger in the UK led to significant investment and innovation.
“Since then, the UK has started to lag behind other markets in network infrastructure deployment and quality of service.
“This merger makes it possible for all network operators to aim for world-class status and maintain our national competitiveness.”
However, there’s a cautious tone from Chris Blower, finance and telco client partner at Awin: “While today’s news will certainly send shockwaves through the industry, for the foreseeable, it’s quite ‘business as usual.’
“Promised price caps on selected tariffs for three years provide stability. Long term, this could boost competition and benefit consumers.”
Others, like Boris Maurer, communications and media lead for EMEA, advocate for further consolidation: “To revive growth in the European telecom industry, more in-country and cross-border mergers are essential.
“Consolidation could make telcos financially healthier, mobilise investment, and provide better services for consumers.”
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