The UK Competition and Markets Authority (CMA) has approved a £15 billion merger between Vodafone and Three, creating the largest mobile phone operator in the UK.

Critics, including the union Unite, argue that the merger could lead to significant price increases for consumers, potentially raising bills by up to £300 annually.

As part of the merger agreement, the companies are required to invest billions into expanding their combined 5G network over the next eight years.

To protect consumers, the CMA has imposed a cap on certain mobile tariffs and established preset contractual terms for mobile virtual network operators for three years.

This merger is significant as it surpasses O2, raising concerns among industry experts about potential impacts on competition and consumer prices.

Consumer advocacy groups warn that the merger might reduce competitive pressure, potentially leading to higher prices and decreased service quality in the short term.

Vodafone's Chief Executive, Margherita Della Valle, has assured that the merger will not lead to increased prices for consumers, stating that their £11 billion investment program will be entirely self-funded.

The CMA highlighted that the merger could promote long-term competition among mobile providers, benefiting millions of mobile service users.

The CMA and Ofcom will jointly oversee the merger's implementation, requiring the merged entity to publish annual reports on its network plans and monitor consumer tariffs.

The merger aims to create a third large-scale mobile operator to enhance competition against BT/EE and Virgin Media O2 (VMO2).

The CMA began its investigation in January 2024, escalating to a full probe in June 2024 after market analysis and industry feedback.

After an 18-month review, the CMA determined that the merger would enhance competition and lead to substantial investments in the sector.