The UK government has approved a $19 billion merger between Vodafone UK and Hutchison’s Three UK, paving the way to create the country’s largest mobile operator.

Initially, the Competition and Markets Authority (CMA) expressed concerns that the merger could lead to higher customer prices. However, assurances from Vodafone and Three, including a commitment to invest £11 billion ($14 billion) in 5G infrastructure and protections for retail and wholesale customers, were sufficient to address these issues.

The CMA stated that the merger is likely to enhance competition in the UK’s mobile sector, provided the companies adhere to the proposed measures. Prime Minister Keir Starmer has also called on regulators to prioritize investment and economic growth in their decisions.

Vodafone and Three’s investment plan aims to build an advanced 5G network, benefiting 50 million users, including customers of Vodafone’s network-sharing partner Virgin Media O2. The merger is expected to intensify competition among the three remaining players, which include current market leader BT, and improve service quality for customers.

Vodafone CEO Margherita Della Valle described the approval as a transformative step for the UK telecoms sector, stating, “Today’s approval releases the handbrake on the UK’s telecoms industry, and the increased investment will power the UK to the forefront of European telecommunications.”