Commons Sense

House of Commons · Westminster Hall

Proposed Merger of Three UK and Vodafone — [Sir George Howarth in the Chair]

19 September 2023 · 7 other contributors · 8,931 words

Opened by Navendu Mishra Lab Stockport

Responding minister: John Whittingdale

Business & Trade

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Navendu Mishra raised concerns about proposed merger of three uk and vodafone — [sir george howarth in the chair] in Westminster Hall. A government minister responded.

Key points

  • Navendu Mishra expresses concerns over a proposed merger between Three UK and Vodafone, citing potential job losses, national security risks, and increased consumer costs.
  • Mishra requests the government to prevent data access by Chinese security services, conduct an investment security assessment, and call in the merger for a national security review.
  • The Minister emphasizes the importance of mobile connectivity and 5G technology, highlighting the economic benefits and existing national security measures.

Key requests to Government

Mishra asks the Minister to provide assurances about preventing Chinese security services from obtaining confidential data, assess the merger through the investment security unit, call in the acquisition for a further national security assessment, and meet with Unite the union to discuss these concerns as a matter of priority. He also urges the Government to reinstate yearly meetings with the Intelligence and Security Committee.

How the debate unfolded

MPs spoke in turn to share their views and ask questions. Here's what each person said.

Opened the debate

Navendu Mishra Lab Stockport

Navendu Mishra is concerned about the proposed merger between Three UK and Vodafone, citing higher prices for consumers, potential job losses of up to 1,600 roles, threats to national security due to the involvement of a Chinese company, CK Group, and reduced investment levels in the sector. He also highlights that 2.2 million households are struggling with mobile service costs and predicts bills could rise by over £300 per year for UK customers.

Other contributors (7)
  • Carol Monaghan SNP Glasgow North West

    Carol Monaghan expressed concern over the proposed merger between Three UK and Vodafone, citing previous issues with Huawei. She warned about the potential security risks associated with the Chinese state actor involvement and highlighted the cost to taxpayers from a similar situation three years ago. Monaghan also raised concerns about data privacy and national security threats posed by the CK Group's collaboration with the Chinese Government.

  • Chris Bryant Lab Rhondda and Ogmore

    Discussed the impact of the proposed merger on competition, prices for lower-use mobile customers, investment in 5G, workforce concerns, and security issues. Raised questions about the relationship between CK Hutchison and the Chinese state, national data security guarantees, Huawei removal from 5G networks by Three and Vodafone, and parliamentary oversight.

  • Iain Duncan Smith Con Chingford and Woodford Green

    The hon. Gentleman is concerned about security issues, particularly given the involvement of the Cheung Kong Group and the Li family with Chinese Government committees and data sharing under national security laws.

  • Jim Shannon DUP Strangford

    The merger could be a major shake-up for constituents, with promises of £6 billion investment and near-universal 5G coverage. However, it also raises concerns about national security due to connections with the Chinese state and potential data breaches. Rural areas like Strangford face issues with network coverage and affordability.

  • John Spellar Lab Eston

    Is this not part of what we are seeing across the IT sector, which is driving out competition and setting terms for those working in the industry. This raises real concerns not just to consumers but also to all those involved with the creation of monopolies. When Huawei was installing its equipment, it was argued that hardware could be monitored, but now companies are deeply involved in software, making these systems more vulnerable to possible influence by the Chinese authorities.

  • Kim Johnson Lab Liverpool Riverside

    The merger of Three UK and Vodafone will result in job cuts, higher prices for consumers, and is a bad deal overall. It could lead to price hikes up to 50% or £300 more annually on bills.

  • Mick Whitley

    The proposed merger between Three UK and Vodafone would create the largest operator in the telecom market, increasing prices by an average of 16.3%, which is unaffordable for many struggling households. The process lacks meaningful democratic scrutiny.

Government Response

John Whittingdale

Discussed the importance of mobile connectivity and 5G technology, citing potential £159 billion in productivity benefits by 2035. Highlighted national security measures through legislation like the National Security and Investment Act 2021. Addressed competition concerns with independent regulatory approval and commercial decision-making for job losses. Mentioned social tariffs' positive impact during cost of living challenges, noting low mobile prices compared to other countries. Discussed coverage progress in constituencies and plans for nationwide 5G coverage by 2030 through operator investment. Acknowledged parliamentary scrutiny on economic security measures with the Business and Trade Committee.

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