Vodafone has called on the European Commission to reconsider the methodology used to assess mergers within the telecommunications sector in Europe. The company asserts that current rules, which focus primarily on the number of operators in the market and immediate prices, are no longer sufficient, emphasizing the need to include criteria related to the ability of companies to achieve economies of scale and enhance investments in digital infrastructure.
Changing competition assessment standards
Vodafone believes that competition in a capital-intensive sector like telecommunications should be measured by the ability of companies to develop networks, improve service quality, expand coverage, and enhance network security and reliability. This call comes as the European Commission reviews the draft of new merger guidelines, with Vodafone demanding that the final regulatory framework be based on concrete evidence that balances potential benefits and harms.
What has changed in practice?
Vodafone based its position on a study issued by GSMA Intelligence in July 2026, which showed that telecommunications markets with three operators recorded 48% higher investment per connection compared to markets with four operators since 2016. The data also indicated that market consolidation is associated with an increase in capital expenditure of between 28% and 38%, with a notable improvement in network speeds of about 25%.
The merger experience in the United Kingdom
The company provided a practical example through the merger of its operations with Three UK, where the merged entities committed to investing 11 billion pounds sterling over a decade. According to a report prepared by Frontier Economics, this consolidation led to:
- A 38% increase in average 5G data download speeds.
- Coverage of areas that previously suffered from a lack of signal, amounting to 16.5 thousand square kilometers.
- A 20% improvement in 4G speeds for more than 7 million customers due to the integration of spectrum.
Why does this news matter?
Vodafone argues that consumer welfare is not limited to prices alone, but extends to include call quality, data continuity, and coverage in rural areas. The company asserts that focusing on immediate price effects may obscure long-term investment benefits that require years of equipment upgrades and network expansion. It also explained that local economic scale remains a critical element, as about 80% of mobile network costs are related to the radio access network, which is managed and operated within national markets, making local mergers a strategic necessity to enhance competitiveness and technological innovation.