The Vodafone / Three JV intention is a huge milestone for the UK telco industry. What should we expect in the coming months?
Firstly, the intention to create a JV must now go to the CMA. It will be assessed on how it will tip the market, whether it’s good for business and consumer, and how it will use its combined budget to invest in one 5G infrastructure for coverage that consumers and businesses need. support the UK’s 5G strategy. So, what next? Time will tell if the CMA approves it, but when you consider the UK is a mature market, that is capable of self-righting itself when it comes to managing competition and price, not least because of the very healthy MVNO landscape, I can’t see a reason not to. Personally, I would be surprised if it isn’t approved. Ofcom has already signalled some consolidation would be supported and shareholders certainly reacted well to the news when rumours a deal would be announced emerged. There is concern about dominance. True, it will create a £15bn company. However, in terms of percentage share, it will keep a reasonable balance between the three incumbents – all sit in the 30’s. In Ireland, new MVNOs were part of the strategy to keep the market competitive when Three and O2 merged. But wholesale is already a...
