30 September 2024
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VODAFONE
AND THREE RESPOND TO NOTICE OF POSSIBLE REMEDIES
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· Parties strongly believe the merger is pro-competitive and
remain confident that outstanding issues can be
resolved.
· Two
substantial remedies already tabled: an Ofcom-enforceable £11bn
network investment programme; and the network sharing agreement and
proposed spectrum sale to VMO2.
· On
retail: while our view is that the CMA's concerns about price
increases are unfounded, we will commit to maintaining tariffs at
£10 or below for two years from the completion of the merger for
value-focused customers on the SMARTY brand, social tariffs
on both the SMARTY and VOXI 4 Now brands, and continue measures to
protect registered vulnerable customers.
· On
wholesale: we will provide a reference offer that encourages MVNOs
to access our additional network capacity.
Vodafone and Three's response to the
CMA's Notice of Possible Remedies (Remedies Notice) has been
published today.
Vodafone and Three disagree with the
CMA's Provisional Findings. Our merger will be pro-growth,
pro-customer, pro-investment and pro-competitive for the UK. It is
a once-in-a-generation opportunity to transform UK digital
infrastructure with £11 billion of network investment.
We continue to constructively engage
with the CMA and remain confident that we can work with them to
secure approval. Our response to the Remedies Notice contains
several additional commitments, which we believe comprehensively
address the issues they have raised.
Vodafone and Three have already made
two substantive commitments:
1. Our £11 billion
network investment commitment will ensure UK customers enjoy one of
Europe's most advanced networks and it will level the playing field
with the two larger players to drive competitiveness. We are happy
for Ofcom to monitor and enforce this commitment.
2. The merger will
extend the network quality benefits well beyond the merged
company's own customer base, by extending it to VMO2's direct and
MVNO customers. This agreement will deliver better quality,
enhanced capacity and greater coverage to over 50 million mobile
customers across the country. On approval of the merger, Vodafone
and Three have also agreed to sell spectrum to VMO2, helping to
create a better alignment of spectrum holdings in the UK
market.
While we do not agree with the CMA's
provisional findings that prices will increase, we continue to
explore how we can answer its concerns. Addressing both the retail
and wholesale segments of the market, our additional commitments
include:
· for
retail customers: we will maintain tariffs at £10 or below for two
years from the completion of the merger for value-focused customers
on the SMARTY brand, social tariffs on both the SMARTY and VOXI 4
Now brands, and continue measures to protect registered vulnerable
customers; and
· for
wholesale customers: we will provide a reference offer that
encourages MVNOs - the fastest growing part of the market - to
access our additional network capacity to offer great deals to
retail customers.
The merger of Vodafone and Three is
a catalyst for change. It will deliver a step-change in
connectivity to UK customers and bring best-in-class 5G to every
school and hospital in the country. Transforming the UK's digital
infrastructure is also vitally important for businesses, the public
sector, the UK's technological advancement, and the government's
stated mission to kickstart economic growth.
We will set out comprehensively why
the merger is pro-growth, pro-customer, pro-investment and
pro-competive in our forthcoming response to the CMA's Provisional
Findings.
The CMA's final decision on the
merger is not due until 7 December, and we will continue to
positively engage with them to resolve outstanding
matters.
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About Vodafone
Vodafone is a leading European and
African telecoms company. We provide mobile and fixed services to
over 330 million customers in 15 countries (excludes Italy which is
held as a discontinued operation under Vodafone Group), partner
with mobile networks in 45 more and have one of the world's largest
IoT platforms. In Africa, our financial technology businesses serve
almost 79 million customers across seven countries - managing more
transactions than any other provider.
Our purpose is to connect for a
better future by using technology to improve lives, businesses and
help progress inclusive sustainable societies. We are committed to
reducing our environmental impact to reach net zero emissions by
2040.
For more information, please
visit www.vodafone.com follow us on X at @VodafoneGroup or connect with us on
LinkedIn at
www.linkedin.com/company/vodafone.
