Vodafone and Three’s proposed merger in the UK has been criticized by the Unite trade union, which contends that the deal could deepen existing structural inequalities. To support its position, the union commissioned a survey of Three customers through the polling agency, Survation, aiming to underscore the potential negative impact of the merger on the UK mobile market.
The union focused on how the merger might affect mobile service provision, a key consideration for the UK Competition and Markets Authority (CMA) in its phase 2 investigation. Unite’s survey, which sampled 1,000 Three UK customers, suggests that the merger could worsen the ongoing cost-of-living crisis and deepen existing inequalities, particularly affecting low-income, female, and ethnic minority consumers.
Related: BT Slams Proposed Vodafone-Three UK Merger
Unite’s letter to the CMA pointed out that Three—a challenger brand— offers some of the most affordable tariffs in the market. The union fears that the merger could lead to the removal of these competitive prices. It highlights concerns that post-merger price increases could disproportionately impact vulnerable groups, noting that female Three customers are 9% more likely to struggle with mobile bill payments than their male counterparts. In contrast, Black, Asian, and Ethnic Minority (BAME) Three customers are 12% more likely to face difficulties compared to white customers.
While Unite’s analysis assumes that the merger will lead to higher prices—a scenario that is not guaranteed—the union’s arguments will likely resonate with politicians, particularly those from the Labour Party.
Related: CMA Concludes Initial Probe into Vodafone-Three Merger
Additionally, the CMA has received a submission from an anonymous party, presumed to be a UK Mobile Virtual Network Operator (MVNO). This submission disputes the claim that the merger will enhance wholesale choices for MVNOs, suggesting instead that it could diminish their bargaining power. The submission also argues that Three’s competitive position and the relative strength of BT/EE and VMO2 have been overstated and that removing one competitor from the market would exacerbate the current imbalance in MVNO negotiating leverage.
Conversely, some argue that Three’s failure could have an even more detrimental effect on MVNOs, highlighting the situation’s complexity as the CMA continues its review.
Related: Vodafone-Three Merger Faces Further Delay as CMA Extends Investigation
