I entirely agree with my right hon. Friend. This merger is bad news not just for UK customers, but for the people who work for both these businesses and, of course, it poses threats to national security as well.
Investment levels in the sector after the merger of Vodafone and Three in Australia went down by 45%. I ask the Minister: does the evidence therefore suggests that this will be a sensible merger here in the UK?
I want to place on the record my thanks to my union, Unite, for campaigning on this issue. It shares the concerns that so many of us have about jobs and national security, and it has consistently kept members aware of the
implications since the merger was announced. According to Ofcom, 2.2 million households are struggling with the cost of mobile services. As a report by the House of Commons Library stated:
“Bills for some customers rose by over 11% in 2022. Communications consultancy Farrpoint has estimated that, based on inflation projections, bills will rise by a third over the next five years.”
Will the merger make bills cheaper for British customers? Research suggests not. The former chief competition economist at the European Commission has undertaken work showing that prices after a Three-Vodafone merger could be 50% higher. Based on average spending patterns, that means UK customers would pay up to £300 more per year on their mobile bills.
Only a few months ago, we heard that water companies were pushing for bills to rise by up to 40%. We know that electricity and gas payments almost doubled between May 2020 and June 2023, and the Bank of England chief economist recently warned that food inflation is unlikely to come down soon. Why will British customers who use Vodafone and Three have to find even more money for an unnecessary choice that has been foisted on them?
The merger is bad news not only for households’ financial security, but for the UK’s national security.