back to article UK watchdog hints Voda-Three merger will likely pass

Britain's competition regulator says it is minded to approve the merger of telcos Vodafone and Three UK, if the pair commit to network upgrades and short-term customer safeguards against higher bills. "We believe this deal has the potential to be pro-competitive for the UK mobile sector if our concerns are addressed," said …

  1. Stu J

    How about approval only if...

    ...they deliver roaming-capable (i.e. accessible to O2 and EE customers and their MVNOs) proper usable 5G coverage to every single metre of every single railway line and motorway in the country (and yes, that includes tunnels).

    Then at least as a country we'll have something useful out of them before we all inevitably get shafted by price rises.

    1. elsergiovolador Silver badge

      Re: How about approval only if...

      Presenting sensible idea... are you insane?

      1. john.jones.name
        Mushroom

        Security ?

        how about they apply some security to their domains/websites

        no HSTS or DNSSEC

        maybe they should care about the security of their executives email... microsoft suddenly does after they got hacked... deploying DANE

    2. Sir Sham Cad

      Re: How about approval only if...

      Well, that's my hope if this deal goes through. I use 3 for my personal phone and Vodafone for the work device. I can usually get some signal on one or the other, especially on the train, but never both at the same time.

      Of course what we'll actually get is them both being equally shit at the same time.

      1. Steve Kerr

        Re: How about approval only if...

        You got there first - have exactly the same, 3 as personal, voda as work.

        I reckon there's some kind of sharing already in place as several months ago I suddenly got signal on 3 where there was none before but I always got voda at those points.

        1. collinsl Silver badge

          Re: How about approval only if...

          Perhaps for the parent carriers but definitely not for their MNVOs - am on Asda Mobile (voda) and Smarty (3) and the Voda signal is always significantly worse than the 3 signal in most places

      2. Michael Strorm Silver badge

        Re: How about approval only if...

        > what we'll actually get is them both being equally shit at the same time

        Good news- post-merger, their services *will* be effectively those of Vodafone AND Three!

        Bad news- that's a boolean "AND"!

    3. Lee D Silver badge

      Re: How about approval only if...

      If you want that, you remove their ability to deploy their own masts entirely and make them contribute to a centralised cooperative that manages the masts which they have to fund.

      Nationalise the infrastructure, privatise the commercials running on top.

      There's no reason for any of these companies to be anything but an MVNO with infrastructure for all being funded by all.

      Rather than, say, erect one pole for Three, another for BT, another for EE, etc. in the same locations and then having to have them all enter into sharing agreements and all being unwilling to fund anything further because they're just paying for access to their rival's masts and it's up to the rival to bother to upgrade them.

      1. Spazturtle Silver badge

        Re: How about approval only if...

        This is what I have been saying for years, having multiple different networks just adds both infrastructure inefficiency and spectrum efficiency.

        1. GioCiampa

          Re: How about approval only if...

          Same here...

      2. Anonymous Coward
        Anonymous Coward

        Re: How about approval only if...

        "If you want that, you remove their ability to deploy their own masts entirely and make them contribute to a centralised cooperative that manages the masts which they have to fund."

        You appear unaware that Vodafone & O2 have an existing mast-sharing arrangement in place (via a jointly-owned company) for some years and likewise EE & Three have an existing mast-sharing arrangement in place (via a jointly owned company) for some years as well. Obviously as part of a Vodafone / Three merger going through both Vodafone and Three will almost certainly extract themselves from their existing mast-sharing arrangements with O2 and EE.

        "unwilling to fund anything further because they're just paying for access to their rival's masts and it's up to the rival to bother to upgrade them."

        How exactly do you upgrade a *mast* rather than the equipment mounted on or connected to, a mast? Do you upgrade it by making it taller?

        Under the current mast-sharing arrangements the pairs of OpCos involved have their own antennas mounted on each mast and their own equipment etc sited in their own cabinets adjacent to the masts, it is only the mast that is shared.

        1. Richard 12 Silver badge
          Boffin

          Re: How about approval only if...

          A mast isn't just a stick.

          There's power and data run to it, and backup power*.

          If the mast owner doesn't want to upgrade the data connection to the mast, then nobody gets more bandwidth for their customers.

          * In theory. In practice it's a single AAA cell that corroded away years ago.

          1. Anonymous Coward
            Anonymous Coward

            Re: How about approval only if...

            "If the mast owner doesn't want to upgrade the data connection to the mast, then nobody gets more bandwidth for their customers."

            There is no "data connection" to the mast, there are data connections to *each* of the mobile opcos equipment cabinets near the base of the mast.

            Also for the vast majority of mast sites in the UK the mast owner is a company jointly owned by the pair of mobile opcos using that mast and so "the mast owner doesn't want to upgrade the data connection" isn't going to happen.

      3. SkippyBing

        Re: How about approval only if...

        Because nationalised infrastructure in this country has a history of working so well...

        1. Richard 12 Silver badge

          Re: How about approval only if...

          National Grid works.

          The railways are nationalised too, ever since that massive crash caused by the private company not bothering with maintenance because it'd affect profits.

          1. ARGO

            Re: How about approval only if...

            National grid is a private company. As are the regional grids that sit below it.

            Network rail is publicly owned.

            I have problems from one of these a couple of times each month. Guess which?

        2. Anonymous Coward
          Anonymous Coward

          Re: How about approval only if...

          As if our privatised infrastructure has been a paragon of success or better customer service: trains, water/sewage, gas, electricity, airports, telephony, post, etc,

    4. SundogUK Silver badge

      Re: How about approval only if...

      Spending other peoples money again, then?

  2. Tubz Silver badge

    and the key words "short-term customer safeguards against higher bills." to us we would like maybe a couple of years, to V3 that's more likely 6 months or to the next round of price rises and then expect some big jumps from all the providers in a co-ordinated monopolistic cartel round of increases, support by their pet regulator.

    1. Chris Evans

      Why not long term safeguards?

      I've never understood when they decide short-term safeguards are needed what is going to change to make long term safeguards unnecessary?

  3. sabroni Silver badge
    Unhappy

    Removing competition won't help consumers.

    Plenty of bonuses in the board room though, and we all know that's what really matters when it comes to infrastructure.

    1. abend0c4 Silver badge

      Re: Removing competition won't help consumers.

      I'm currently in a country with a much smaller population than the UK where there are three spectrum holders. That should be plenty to ensure a competitive market, but in practice, there's almost no competition at all: the prices are almost indistinguishable and the operators get away with ancient practices such as charging a "line rental" for PAYG mobile phones in the event you don't make calls. The customer service is universally dreadful - to the extent that they will even refuse to cancel a service that's out of contract because of their retention targets.

      The problem is not the number of operators, per se, but the incentives to compete. Reducing "churn" here (long contracts, complex bundles and outright refusal to cancel) is seen to be more important than competition (which would merely increase churn). The UK market is (somewhat) more competitive precisely because there are smaller operators that have to fight harder for revenue. As soon as there are three incumbents of roughly equal market dominance they'll find it's more to their advantage to hold their existing customers hostage than have an awkard minority shopping around.

      1. abend0c4 Silver badge

        Re: Removing competition won't help consumers.

        It seems I'm literally a couple of days out of date and a new kid has just arrived on the block and has acquired spectrum (not just an MVNO), as well as offering fibre broadband. This is partly due to regulatory action against an incumbent.

        Mobile costs seem to be about a third of their nearest present competitor and fibre broadband at 1Gb/s is about a quarter of the cost of the nearest competitor with a minimum contract of months rather than years.

        Whether it works out in the long run remains to be seen - but it does illustrate that you need new entrants to the market to spur competition, not a consolidation of existing ones.

  4. Anonymous Coward
    Anonymous Coward

    The two telcos issued a report last month claiming their current networks were "outdated" due to lack of investment...

    Err - OK. I am intrigued. Just where did the money get 'invested' then? What was so important that investments in the respective networks had to be used elsewhere? It smells of mismanagement to me...

    1. Pascal Monett Silver badge
      Trollface

      Bonuses to the board is never considered mismanagement.

    2. Anonymous Coward
      Anonymous Coward

      In Huawei kit, which an arbitrary government decision then forced them to remove.

      Best part of a billion had to be spent just to get back to where they were.

      1. Roland6 Silver badge

        So why not say that…

  5. Roland6 Silver badge

    What does Ofcom have to say…

    “ The two telcos issued a report last month claiming their current networks were "outdated" due to lack of investment”

    Perhaps the CMA needs to talk to OFCOM, as the above inflation annual price increases were supposed to be to fund network investment. So it would seem monies have been diverted…

    1. elsergiovolador Silver badge

      Re: What does Ofcom have to say…

      To set up the bail out?

  6. Anonymous Coward
    Anonymous Coward

    No good will come of this

    That is all

  7. Carl W

    Lots to unpick

    Vodafone and Three already do mast-sharing, but not with each other.

    Vodafone and O2 have a joint venture called Cornerstone while EE and Three have a joint venture called MBNL.

  8. cookiecutter

    Why bother with a regulator?!

    Between microshit/Activision; broadcom/vmware; not vodafone/3...add to that the willingness to sell ARM. None of this is our was good for consumers. Every merger has been bad for prices, innovation & customer service.

    Just more pointless shit that will see prices rise across the board & the shite, almost unusable mobile networks we have in this country get even worse

    1. devin3782

      Re: Why bother with a regulator?!

      We call this Enshittification.

  9. Anonymous Coward
    Anonymous Coward

    It could be good

    I recently moved from Three to Vodafone, because I was sick of Three's patchy coverage.

    Vodafone was no better. So I cancelled in my cooling off period.

    I tried an EE PAYG SIM and had good coverage where I needed it. Then I set up an account with 1p mobile who are a MVNO using EE's network. My coverage is now brilliant.

    Remember, EE is a merger of two networks, Orange and T-Mobile. So, by merging, they created an actually usable network. Perhaps Three and Vodafone can do the same.

    As for costs, MVNOs are often going to give a better deal for most people, if you can shop around in a savvy way and know exactly what you need and what frills you can do without (including for example bi-yearly phone updates on payment plans).

    1. phuzz Silver badge

      Re: It could be good

      It used to be the case that some networks were good in some areas, and others were better in other areas, so your choice was usually whichever network best served your home.

      These days, I've found they all tend to share masts, so they're equally good/shit in a particular area. At least, in all the areas I've bothered checking.

      1. katrinab Silver badge
        Meh

        Re: It could be good

        Where I live, O2 has a perfect signal, and the speed is basically the same as my landline internet, probably because they both connect to the same street cabinet. On Three I can barely get a signal.

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