Union Unite thinks the proposed merger in Britain of telcos Vodafone and Three would results in thousands of people losing their jobs, price hikes for customers, and a "serious threat" to national security.

The warning came this morning as politicians were preparing to debate the alliance that was first mooted in June, when the duo pledged to sink $11 billion ($13.93 billion) into the local 5G infrastructure over a decade.

Liam Byrne, Member of Parliament for Birmingham Hodge Hill, a chair of the cross-party Business and Trade Select Committee, is today leading a debate about the merger in the House of Commons.

The evidence sessions will explore possible implications for competition, as well as arguments for and against the tie-ip. Vodafone, Three, a chief economist, and Unite are all presenting to the politicos.

Unite is pretty emphatic in its desire for the merger to be cancelled, referring to it as a "blighted deal."

"The involvement of Three's parent company, CK Hutchison, which has direct links to the Chinese state, raises significant national security concerns. If the merger goes ahead, CK Hutchison would have access to over 27 million UK customers' accounts, as well as vital UK public contracts," Unite claimed.

"The merger also threatens the UK's mobile network operator market, reducing it from four to three players. This reduction is likely to lead to increased prices for consumers. Independent analysis indicates the merger could see bill increases of up to £300, impacting millions of UK residents, as well as putting thousands of jobs at risk.”

Sarah Carpenter, Unite's executive head of operations, said its objections were about "taking a stand for workers and consumers, against corporate greed and wheeling dealing."

In October, the Competition and Markets Authority asked industry for feedback about the alliance between Vodafone and Three to determine the anticipated impact of rivals, customers, or both.

Under the terms of the merger agreement, Vodafone would own a 51 percent stake in the consolidated entity, which will be referred to as "MergeCo" until the transaction is approved and a new brand can take shape.

When the deal was first announced, Canning Tok, co-managing director at Three parent CK Hutchison, said: "Three UK and Vodafone UK currently lack the necessary scale on their own to earn their cost of capital." The plan is to pour billions of pounds into next generation networks.

As Kester Mann, CCS Insight director of consumer and connectivity, pointed out to us previously, industry should expect "passionate lobbying and intensive debate ahead of the crucial decision."

He told us in October that if concessions and remedies cannot be agreed, "Vodafone and Three would be left with highly uncertain futures in the competitive UK market."

The Register has asked Vodafone and Three to comment.

We asked Unite how many members it has working at Vodafone and Three, and whether it plans to ballot them on their desire for potential industrial action. ®

https://www.theregister.com//2023/12/14/unite_the_union_claims_vodafone/