Tens of millions could pay more if Vodafone-Three merger goes ahead, CMA warns

Published

2 months ago

September 13, 2024

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Tens of millions of mobile phone users could end up paying more if the merger between Vodafone and Three goes ahead, the competition watchdog has warned.

The deal would create the UK’s biggest mobile network and could also improve network quality, the Competition and Markets Authority (CMA) said.

The proposed £15bn merger, announced last year, would bring 27 million customers together under a single provider.

But claims of providing a faster 5G network are “overstated”, the CMA added, and the new combined network would not “necessarily have the incentive” to follow through on its investment and improvement plan.

Customers may have to pay more for services they don’t value, the regulator also said.

The CMA added it is particularly concerned about the possible effect on those least able to afford higher bills.

It is also worried some people could end up with a reduced service, perhaps with smaller data packages in phone contracts, post-merger.

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What next?

The CMA has provisionally concluded the merger would result in a “substantial lessening of competition” in the UK.

It will now consider how the companies could address those concerns. If they aren’t met the CMA could block the entire deal.

Possible ways of alleviating those competition issues include making legally binding investment commitments overseen by communications regulator Ofcom and implementing measures to protect customers.

A final decision will be made in early December.

The regulator had announced an in-depth investigation in April over fears the merger could “result in a substantial lessening of competition”.

What do Vodafone and Three say?

Both companies disagreed with the concerns raised by the CMA but said they could be addressed.

Prices would actually fall after the merger, a joint statement from the companies insisted.

It said: “The CMA’s price rise assumptions are contrary to the business and investment plans the parties have signed up to for the merged company.

“Prices will either stay broadly the same or actually drop post-merger as a result of the vastly enhanced competitive pressures.”

Vodafone and Three look forward to working constructively with the CMA, they said.

The firms added: “We have made clear we are committed to delivering our £11bn investment plan and best-in-class network which locks in the transaction’s benefits and addresses the CMA’s provisional concerns.

“We are willing for this commitment to be monitored independently and enforced by Ofcom.”

UK

Gatwick Airport: Police release two people who were detained amid security incident as South Terminal reopens

Published

3 mins ago

November 23, 2024

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Gatwick Airport: Police release two people who were detained amid security incident as South Terminal reopens

Two people detained during a security incident at Gatwick Airport have been allowed to continue their journeys after a suspect package saw a “large part” of the South Terminal evacuated.

The terminal was closed for hours after the discovery of a “suspected prohibited item” in a passenger’s luggage sparked an emergency response. It reopened at around 3.45pm.

Officers from the EOD (Explosive Ordnance Disposal) team “made the package safe” before handing the airport back to its operator, Sussex Police said.

Their statement continued: “Two people who were detained while enquiries were ongoing have subsequently been allowed to continue their journeys.

“There will remain an increased police presence in the area to assist with passengers accessing the South Terminal for onward travel.”

The force also thanked the public and airport staff for their patience while the incident was ongoing.

Earlier the airport, which is the UK’s second busiest, said the terminal was evacuated after a “security incident”.

“The earlier security alert has now been resolved and cleared by police,” it later said in a statement on Friday afternoon.

“The South Terminal is reopening to staff and will be open to passengers shortly.”

Gatwick said some flights were cancelled while others were delayed.

It said passengers should contact their airlines for any updates on flights.

Footage on social media taken outside the airport showed crowds of travellers heading away from the terminal building.

“Arrived at London Gatwick for routine connection. Got through customs to find out they’re evacuating the entire airport,” one passenger said.

“Even people through security are being taken outside. Trains shut down,” another passenger added, who said “thousands” of people were forced to leave.

Another passenger said people near the gates were being told to stay there and not go back to the departure lounge.

People outside the airport were handed blankets and water, passengers told Sky News.

The airport said its North Terminal was still operating normally.

Gatwick Express said its trains did not call at Gatwick Airport during the police response, but the airport said trains would start calling there again once the terminal was fully reopened.

More than 600 flights were due to take off or land at Gatwick on Friday, amounting to more than 121,000 passenger seats, according to aviation analytics firm Cirium.

UK

Starmer says UK will ‘set out a path’ to raise defence spending to 2.5%

Published

3 hours ago

November 23, 2024

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Starmer says UK will 'set out a path' to raise defence spending to 2.5%

The UK will “set out a path” to lift defence spending to 2.5% of national income in the spring, the prime minister has said, finally offering a timeframe for an announcement on the long-awaited hike after mounting criticism.

Sir Keir Starmer gave the date during a phone call with Mark Rutte, the secretary general of NATO, in the wake of threats by Moscow to target UK and US military facilities following a decision by London and Washington to let Ukraine fire their missiles inside Russia.

There was no clarity though on when the 2.5% level will be achieved. The UK says it currently spends around 2.3% of GDP on defence.

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A spokeswoman for Downing Street said that the two men “began by discussing the situation in Ukraine and reiterated the importance of putting the country in the strongest possible position going into the winter”.

They also talked about the deployment of thousands of North Korean soldiers to fight alongside Russia.

“The prime minister underscored the need for all NATO countries to step up in support of our collective defence and updated on the government’s progress on the strategic defence review,” the spokeswoman said.

“His government would set out the path to 2.5% in the spring.”

The defence review will also be published in the spring.

While a date for an announcement on 2.5% will be welcomed by the Ministry of Defence, analysts have long warned that such an increase is still well below the amount that is needed to rebuild the armed forces after decades of decline to meet growing global threats from Russia, an increasingly assertive China, North Korea and Iran.

They say the UK needs to be aiming to hit at least 3% – probably higher.

With Donald Trump returning to the White House, there will be significantly more pressure on the UK and other European NATO allies to accelerate increases in defence spending.