The Three-Vodafone Merger: Myths and Reality
Don’t believe another corporate lie. A merger between Three and Vodafone would be bad for consumers and bad for the United Kingdom. Here is what a Three-Vodafone telecom monopoly would mean for consumers like you.
Higher Prices for Consumers
As over 2.2 million UK households struggle with the cost of mobile services, Three and Vodafone have both already rolled out above-inflation price hikes of up to 14% on monthly plans. A merger would only exacerbate these pains for UK consumers.
Research by the former Chief Competition Economist at the European Commission shows that prices could increase up to 50% following a Three-Vodafone merger. Based on current average spending patterns, this means UK consumers would pay up to £300 more per year on their mobile bills.
Loss of Jobs for UK Workers
In addition to boosting profits and driving up prices for consumers, a merger would mean big job cuts. Up to 1,600 jobs could be lost if the merger goes through.
UK Data and National Security Concerns
The boss of Three’s parent company, CK Group, collaborates with Chinese state repression.
A merger would give the CK Group significant control over the data of 40% of the UK public—and access to sensitive public sector contracts.
Vodafone is currently a strategic supplier to the UK public sector. Vodafone provides data and telecoms services to the Ministry of Justice, including running a pre-recorded evidence service for survivors of rape and sexual violence. It also provides the infrastructure for the NHS 111 helpline. Three is not currently a public sector supplier, so this merger would give Three and CK Group direct access to sensitive government telecoms contracts for the first time.
News & Resources
Hutchison briefed UK government as Vodafone deal set for regulatory scrutiny
The deal is likely to be announced as millions of customers on all four networks face double-digit rises in their bills, focusing regulators’ minds on retaining a competitive market.
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