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Sep 08, 2021
3:19 AM
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A £31bn merger between mobile networks Virgin Media and O2 has been provisionally approved by the UK's competition watchdog.
It will create one of the UK's largest entertainment and telecoms firms, which could become a major rival to BT.
The Competition and Markets Authority (CMA) launched an investigation into the proposals last December.
Analysts said it was a "blockbuster merger" that could create greater choice for consumers.
O2 has about 34 million mobile phone users, while Virgin has about six million broadband and cable TV customers, and another three million mobile users.
As well as having its own subscribers, O2 provides the network for Tesco Mobile, Giffgaff and Sky Mobile.
Leased lines pg demo
Virgin also provides wholesale "leased lines" to Vodafone and Three - which are key parts of the rival mobile networks' operations.
Previously, the CMA had said it was concerned the merger would result in Virgin and O2 raising prices for such services, reducing their quality or withdrawing them altogether.
This, in turn, would raise prices for consumers at rival networks, driving them to Virgin and O2.
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