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LONDON, Dec 11 (Reuters) - Britain on Friday said it had
referred the merger between broadband company Virgin Media and
Telefonica's UK mobile network O2 to an in-depth
competition investigation.
The Competition and Markets Authority said O2 and Liberty
Global-owned Virgin had requested the merger should be
fast tracked to an in-depth investigation given the deal's
potential impact on the UK telecoms markets.
It said both Virgin and O2 provided wholesale services to
other mobile network operators in the UK, including wholesale
mobile services and mobile backhaul.
"The CMA is concerned that, following the merger, Virgin and
O2 may have an incentive to raise prices or reduce the quality
of these wholesale services, ultimately leading to a worse deal
for UK consumers," it said.
The two companies agreed in May to merge their British
businesses in a $38 billion deal to create a powerhouse in
mobile and broadband to take on market leader BT.
(Reporting by Paul Sandle; editing by Sarah Young and James
Davey)
