British regulator says $19.5 billion Vodafone-Three merger could go ahead if remedies are adopted

Core Viewpoint - Vodafone is set to cut 11,000 jobs over three years as new leadership criticizes recent performance, while the proposed merger with Three could proceed if certain conditions are met to address competition concerns [1][6]. Merger Details - The £15 billion ($19.5 billion) merger between Vodafone and Three is likely to be approved if both companies commit to significant investments in UK telecom infrastructure and implement short-term customer protections [2][4]. - Vodafone plans to invest £11 billion ($14.46 billion) into UK telecommunications infrastructure post-merger [2]. Regulatory Conditions - Conditions for the merger include a legally mandated commitment to upgrade networks over the next eight years, maintaining existing mobile tariffs for at least three years, and ensuring competitive wholesale deals for mobile virtual network operators (MVNOs) [3][4]. - The Competition and Markets Authority (CMA) believes that addressing its concerns could make the merger pro-competitive for the UK mobile sector [3]. Industry Impact - The merger would reduce the number of mobile operators in the UK to three, positioning Vodafone and Three against larger rivals like EE and O2 [7]. - Vodafone argues that the merger is necessary to improve the UK's digital infrastructure and enhance competition among MVNOs [8]. Market Reactions - The CMA's announcement is seen as a significant step towards the merger, potentially creating a new market leader with over 29 million customers [9]. - However, competitors like BT and Sky Mobile oppose the merger, arguing it would reduce competition and deter investment in the sector [10].