The UK competition watchdog has updated their findings in their Vodafone-Three merger probe, provisionally saying that under certain conditions, the merger would be allowed to go ahead.

The Competition and Markets Authority (CMA) investigation, led by an independent inquiry group, decided provisionally that a multi-billion commitment to upgrade the merged company’s network across the UK, including the roll-out of 5G, combined with short-term customer protections, could solve the competition concerns it identified in September.

Back in September, the CMA was concerned that the merger could lead to higher prices for customers and harm the position of mobile virtual network operators, such as Sky Mobile, Lyca, Lebara, and iD Mobile.

Following this, the CMA consulted on potential solutions, or remedies, and has now released a Remedies Working Paper seeking views on the effectiveness of a proposed remedy package.

In the paper, the CMA has provisionally found that a legally binding commitment to undertake the network integration and investment programme proposed by Vodafone and Three would significantly improve the quality of the merged company’s mobile network, boosting competition between mobile network operators in the long term and benefiting millions of people who rely on mobile services.

The CMA also found that short term protections would be needed to ensure that retail consumers and mobile virtual network operators can continue to secure good deals during the initial years of network integration and investment roll-out.

Under the CMA’s proposition, Vodafone and Three would have to deliver their joint network plan – which sets out the network upgrade and improvements they will make through significant levels of investment over the next 8 years across the UK, which would be seen as a legal obligation.

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Further, they would have to commit to retain certain existing mobile tariffs and data plans for at least three years, and commit to pre-agreed prices and contracts to ensure that Mobile Virtual Network Operators can obtain competitive wholesale deals.

“We believe this deal has the potential to be pro-competitive for the UK mobile sector if our concerns are addressed,” Stuart McIntosh, chair of the inquiry group leading the investigation, said.

“Our provisional view is that binding commitments combined with short-term protections for consumers and wholesale providers would address our concerns while preserving the benefits of this merger.

“A legally binding network commitment would boost competition in the longer term and the additional measures would protect consumers and wholesale customers while the network upgrades are being rolled out.”