Three UK has highlighted the benefits of consolidation in the mobile market in response to Ofcom’s future approach to mobile markets discussion paper.
Robert Finnegan, CEO Three UK, said: “As things stand, the UK does not have the quality of mobile infrastructure it deserves. Investment is spread too thinly across too many players, meaning our networks are sub-par by international standards.”
“Consolidation in the industry could change that. Moving from four to three mobile players in the UK would mean better, smarter investment in the networks which would, in turn, improve the quality and scale of connectivity in Britain and would unleash more competition.”
Ofcom’s discussion paper appears to reflect a cooling on the idea of consolidation, potentially green lighting Three UK’s proposed merger with Vodafone.
The paper reads: “The question of whether a particular merger is likely to result in a substantial lessening of competition will turn on the effectiveness of competition that can be expected in the market after the merger, rather than just the number of competitors.
“Our stance on a potential merger would therefore be informed by the specific circumstances of that particular merger, taking into account how markets are evolving.”
Finnegan added: “We welcome Ofcom’s clarification that it has no fixed position on mobile consolidation, and its recognition that what matters is the effectiveness of competition rather than just the number of competitors.”