The Competition and Markets Authority (CMA) has announced that the merger between Vodafone and Three can proceed, provided both companies agree to legally binding commitments aimed at improving the UK's 5G network. This decision comes after an in-depth Phase 2 investigation raised concerns about potential price increases for customers and less favorable terms for virtual network providers.

To address these concerns, the CMA has stipulated that Vodafone and Three must invest significantly in a joint network plan that outlines upgrades and improvements over the next eight years. This plan is expected to enhance competition among mobile network operators, ultimately benefiting millions of users who rely on mobile services.

Additionally, the merged entity will be required to cap certain mobile tariffs and data plans for three years, protecting customers from immediate price hikes. The companies must also offer pre-set prices and contract terms to mobile virtual network operators for the same duration, ensuring competitive access to wholesale services.

The implementation of these commitments will be overseen by both the CMA and Ofcom, the communications regulator. The merged company will also need to publish an annual report detailing its progress on the network plan. The CMA will monitor compliance with the consumer tariff and wholesale terms protections.

Stuart McIntosh, chair of the independent inquiry group, emphasized the importance of maintaining competition in the telecoms market. He stated that the merger is likely to enhance competition in the UK mobile sector, but only if the proposed measures are implemented effectively.