Final decision Dec 7 (Il Sole 24 Ore Radiocor) - London, 13 Sep - The UK Competition and Markets Authority said it has provisionally concluded that the anticipated joint venture between Vodafone and CK Hutchinson that would combine their telecoms businesses Vodafone Limited and 3UK could lead to a substantial lessening of competition (SLC) in the UK retail and wholesale mobile services markets.

The CMA said that the deal would lead to price increases for tens of millions of mobile customers, or see customers get a reduced service such as smaller data packages in their contracts. It would create the largest retail mobile operator by revenue in the UK and the second largest in terms of customers. The Parties collectively have over 27 million subscriptions in the UK which would be directly affected by any price rises. The CMA also predicts some level of price increase across the retail market as a whole, which in 2023 comprised almost 90 million mobile subscriptions.

The regulator admitted that the deal could improve the quality of mobile networks, but incentives to follow through on the investment once deal is complete are uncertain.

The CMA said it welcomes responses to its provisional findings by October 4 and its notice of possible remedies by September 27. These will be considered ahead of issuing its final report, which is due by December 7.

Vodafone said it disagreed with the provisional findings as the deal "is a once-in-a-generation opportunity to transform UK digital infrastructure with 11bn of investment." "Our merger is a catalyst for change. It's time to take off the handbrake on the country's connectivity and build the world-class infrastructure the country deserves. We are offering a self-funded plan to propel economic growth and address the UK's digital divide," said Vodafone chief executive Margherita Della Valle.

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(RADIOCOR) 13-09-24 10:58:21 (0214) 5 NNNN