Tens of millions of mobile phone users could end up paying more if the merger between Vodafone and Three goes ahead, the competition watchdog has warned.
The deal would create the UK’s biggest mobile network and could also improve network quality, the Competition and Markets Authority (CMA) said.
But claims of providing a faster 5g network are “overstated”, it added, and the new combined network would not “necessarily have the incentive” to follow through on its investment and improvement plan.
It has provisionally concluded the merger would result in “substantial lessening of competition” in the UK.
The CMA will now consider how the companies could address those concerns.
The regulator had announced an in-depth investigation in April over fears the merger could “result in a substantial lessening of competition”.
Mobile phone users could face higher prices and reduced quality of service if the plans went ahead, it said at the time.
The proposed £15bn merger, announced last year, would bring 27 million customers together under a single provider.
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