Vodafone and Hutchison offer price pledges to answer UK deal concerns (updated)

Liberty Global

30/09/2024 11:34

(Adds details in paragraphs 2-3, quote in paragraph 10)
       LONDON, Sept 30 (Reuters) - Vodafone  VOD.L  and
Hutchison's  0001.HK  Three UK will commit to low tariffs on
their value brand for two years and give better access to
wholesale operators, making new pledges to the regulator to try
to get approval for their $19 billion merger. 
        Britain's antitrust regulator, the Competition and
Markets Authority (CMA), is due to make its final decision on
the tie-up between the two mobile operators by Dec. 7. 
  
    The companies said they would maintain prices on the SMARTY
value brand at 10 pounds or below, as well as keep social
tariffs and exclude vulnerable customers from mid-contract price
rises, according to a submission to the CMA published on Monday.
    They said they were also prepared to commit to offer access
to their joint network on pre-agreed terms to third-party
operators with 2.5 million or fewer customers.
    The CMA said earlier this month that the deal, which reduces
the number of networks from four to three, could push up prices
for customers.
        But they signalled it could received clearance if the
two parties could guarantee it would be positive for consumers,
network quality and wholesale competitors like Sky Mobile.
  
        The merger will create a market leading competitor to
BT's  BT.L  EE and Virgin Media O2  TEF.MC   LBTYA.O .
  
        Vodafone and Three UK said they disagreed with CMA's
view on consumer pricing, and pointed to their existing promises
to invest 11 billion pounds in their joint network and sell some
of their combined spectrum to VMO2.
  
        However, they also offered the new pledges as part of a
final push to get the deal cleared.
  
        "We will continue to positively engage with them (the
CMA) to resolve outstanding matters," they said in a statement.
  

 (Reporting by Paul Sandle; Editing by Sachin Ravikumar and
Sarah Young)
 ((paul.sandle@thomsonreuters.com; +44 20 7542 6843; Reuters
Messaging: paul.sandle.thomsonreuters.com@reuters.net))