Vodafone clashes with watchdog over Three merger

Vodafone and Three have rejected claims by the UK's competition watchdog that their proposed merger would lead to higher prices for millions of mobile users. The Competition and Markets Authority (CMA) has "provisionally concluded" the deal would weaken competition between mobile networks. It has particular concerns that customers who are least able to afford mobile services would be most affected.

The regulator will now consult on its findings and potential solutions to its worries over competition. These solutions could include legally binding investment commitments, and measures to protect both retail and wholesale customers.

Vodafone's CEO for European Markets, Ahmed Essam, told the Today programme, on BBC Radio 4, that he still believed the merger would make a better network for customers, and add to the competition in the market.

"We've made a significant commitment to an £11bn investment," he said. "We're willing to make sure that this is legally binding, and we undertake a commitment to deploy this."