Millions of mobile customers could pay more if two major providers merge, regulator warns
TENS of thousands of customers could end up paying more money if the merger between two major mobile firms goes ahead, the competition watchdog has warned.
Vodafone and Three announced a £15billion merger last year, which would bring 27million customers together under one network.
The pair said the move would help improve network quality and provide faster 5G.
But the Competition and Markets Authority (CMA) has now flagged a number of concerns about the deal, including fears it could raise prices for customers.
The CMA launched an in-depth investigation into the merger in April over fears the deal could "result in a substantial lessening of competition".
The CMA also said it has particular "concerns that higher bills or reduced services would negatively affect those customers least able to afford mobile services as well".
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It is now working to figure out how both firms can work to address these issues.
Stuart McIntosh, chair of the inquiry group leading the investigation, said, he has taken a "thorough approach" when examining the mega-merger.
He explained: "We will now consider how Vodafone and Three might address our concerns about the likely impact of the merger on retail and wholesale customers while securing the potential longer-term benefits of the merger, including by guaranteeing future network investments."
The CMA often blocks mergers between companies if they fear it could leave customers worse off.
Back in 2020, the government body put a halt to plans by JD Sports to buy rival Footasylum after finding it would reduce competition in the market.
The deal between Three and Vodafone could still go ahead, with the CMA set to publish a final report in December.
It comes as millions of customers have struggled to keep up with their monthly broadband and mobile payments amid the cost of living crisis.
Many providers introduce mid-contract price hikes, which means your monthly bill increases in line with inflation every April, plus an added percentage.
From January 15 next year, providers will be banned from doing this in percentage terms and will have to include an exact pounds and pence figure in your contract - but this will still mean customers have to pay extra.