Analysis: Vodafone and Hutchison's UK mobile merger faces tough test yet

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It has taken months of tortuous negotiations for Vodafone and CK Hutchison to agree a deal to create Britain's biggest mobile operator, but from a regulatory standpoint the hard work is only just beginning

to agree a deal to create Britain's biggest mobile operator, but from a regulatory standpoint the hard work is only just beginning.will be scrutinised by Britain's Competition and Markets Authority, the antitrust regulator which made global headlines in April when it blocked Microsoft's $69 billion acquisition of "Call of Duty" maker Activision Blizzard.

Aware of the hurdle ahead, Vodafone and Hong Kong-based Hutchison put the emphasis on an 11 billion-pound 5G plan they pledged to deliver over 10 years for Britain, rather than more profit for shareholders. Peter Broadhurst, a partner in the antitrust and competition group at Crowell & Moring, said the CMA had become more interventionist in the last three years. However, he thought it would look for remedies to approve the deal.

One of Britain's biggest unions, Unite, has already warned that a company so close to China should not have a leading role in telecoms infrastructure. But competition in Britain has been boosted by the mobile virtual network operator and wholesale market, which enables operators like Tesco Mobile and Sky to piggy back on existing networks, Gray said.

 

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