Additionally, the companies are required to maintain certain existing mobile tariffs and data plans for at least three years to protect consumers from rising costs.

The CMA believes that a legally binding commitment to enhance network infrastructure would yield long-term competitive benefits in the mobile sector.

A final decision on the merger is expected by December 7, 2024, with Vodafone and Three required to respond to the CMA's findings by November 12.

While the merger has garnered support, it faces opposition from the Unite union, which warns of potential mobile bill increases of up to £300.

Following the CMA's announcement, Vodafone's shares rose nearly 2%, reflecting investor optimism about the merger's potential approval.

The UK's Competition and Markets Authority (CMA) has provisionally concluded that the merger between Vodafone and Three could proceed, provided both companies commit to consumer price protections and enhance the UK's 5G rollout.

If approved, the merger would create the largest mobile operator in the UK, combining Vodafone and Three's customer bases to serve over 27 million subscribers.

Vodafone and Three argue that the merger represents a significant opportunity to improve the UK's digital infrastructure, which currently lags behind other European nations.

The CMA's investigation into the merger, which began following its announcement in June 2023, has raised concerns about potential price increases and negative impacts on mobile virtual network operators (MVNOs) that rely on Vodafone and Three's services.

Previous findings by the CMA indicated that the merger could lead to higher prices and reduced options for MVNOs like Sky Mobile and Lebara, prompting the need for protective measures.

Despite earlier concerns, the CMA now believes that these issues can be addressed through proposed remedies, which include legally binding commitments from Vodafone and Three.

To alleviate competition concerns, Vodafone and Three must agree to pre-established pricing and contract terms for MVNOs, ensuring competitive wholesale deals.