The Competition and Markets Authority (CMA) of the United Kingdom has granted preliminary permission for the £15 billion merger between Vodafone and Three UK. This agreement, which aims to become the biggest mobile network provider in the UK, is viewed as perhaps "pro-competitive" if the businesses fulfil certain obligations. Among these is a commitment to spend £11 billion over the next eight years on infrastructure improvements, especially for the introduction of 5G. They also need to guarantee fair wholesale agreements for smaller virtual network providers like Sky Mobile and Lebara, as well as pricing safeguards for certain tariffs.

At first, the CMA voiced worries about potential price increases and diminished competition. These worries have been allayed, though, by the suggested pledges, which include keeping certain tariffs in place and giving wholesale clients competitive rates. Long-term advantages of the merger include increased network capacity and wider availability of high-speed mobile connections, which may help the country's technological development objectives.

Three's parent firm, CK Hutchison, will keep 49% of the new business, while Vodafone will own 51%. Notwithstanding these changes, the merger's final decision is anticipated by December 7, 2024, with continuing assessments to guarantee that the interests of consumers are protected. According to both companies, the combination has the potential to speed up the development of digital infrastructure and enhance service quality, making it a game-changer for the UK telecom market. But some industry participants, including BT, have voiced worries about market domination, highlighting the deal's complexity and importance.​

If approved, this transaction will be a game-changer for Vodafone and may establish the combined company as a dominant player in the UK telecom market. Although some analysts caution that customers may experience difficulties in the long run as a result of sector consolidation, this might increase customer numbers, enhance services, and spur more investments.