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The Guardian - UK
The Guardian - UK
Business
Mark Sweney

Price hike fears as Ofcom softens stance on mobile firm mergers

Vodafone shop in London
Vodafone has said the European telecoms industry needs to consolidate to ensure profitability. Photograph: Toby Melville/Reuters

The telecoms regulator has dropped its long-held belief that a merger between any of the UK’s big four mobile operators should be blocked at all costs, reigniting fears that less competition could lead to higher-priced phones and bills for consumers and businesses.

Under the former chief executive Sharon White, Ofcom was an outspoken opponent of Three UK’s attempted £10.25bn takeover of O2, which was blocked by competition regulators six years ago. Ofcom said on Tuesday it had now “clarified its position on mobile consolidation”.

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