The competition watchdog has approved the creation of the UK’s biggest phone network by allowing the merger of Three and Vodafone.
Regulator the Competition and Markets Authority (CMA) issued the decision despite previously saying tens of millions could pay more as a result of the amalgamation.
CMA approval is contingent on the new entity spending billions to improve 5G internet services across the network, it said.
Legally binding targets have been set out for the combined Vodafone and Three to agree and meet.
They must cap some mobile tariffs and offer preset contractual terms to mobile virtual network operators, mobile providers that do not own the networks they operate on, for three years.
Both the CMA and communications regulator Ofcom will enforce these, with annual progress reports being submitted by Vodafone and Three.
This is enough to satisfy competition concerns, the CMA said.
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Better 5g services through increased investment would boost competition between the mobile network operators in the long term, it added, “benefiting millions”.
The decision takes the number of mobile phone networks from four to three and creates the UK’s biggest provider.
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