Opinion is divided in the telecoms industry over the proposed Vodafone and Three UK merger, with at least one rival in favor of the deal, while others want to see the Brit competition regulator scrap it altogether., claiming the move would create a third player in the British market with the scale to be able to compete against the two giants, BT/EE and Virgin Media O2 .
Accordingly, it says that"BT does not believe behavioral remedies would work," and therefore"prohibition is the only viable and proportionate remedy." Unlike BT, it believes that any concerns the CMA might have can be addressed by behavioral commitments from the Parties."Behavioral remedies are appropriate in this case given the regulated nature of the telecoms sector," it says, claiming that Ofcom is well placed to assist the CMA in specifying, monitoring and enforcing VodaThree's proposed commitments.
Sky, owner of another MVNO, Sky Mobile, is dead against the move. It says:"Sky considers that the Merger must be prohibited if the UK wants to retain a thriving and competitive mobile market for consumers with strong MVNOs able to compete head-on with Mobile Network Operators."Vodafone, VMO2 shuffle spectrum to woo watchdog amid merger moves
It warns the CMA against generic"sticking plaster" remedies such as wholesale access terms and/or ring-fenced capacity."We do not consider that these remedies address the substantial competition concerns, will be effective or workable in practice," it states.
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