The Competition and Markets Authority (CMA) has proposed a series of investments that could pave the way for the £15bn merger between Vodafone and Three to be finalised.

The watchdog's suggestions include enhancing the merged entity's UK network, including 5G roll-out, and implementing short-term customer protections, as reported by City AM.

This development follows the CMA's previous assertion in September that the planned merger could result in price hikes for millions of mobile users. The CMA also expressed concerns at the time that the deal, first announced last year, might lead to customers receiving reduced services, such as smaller data packages.

The watchdog voiced "particular concerns" about the potential negative impact on customers least able to afford mobile services and those who may have to pay more for network quality improvements they do not value. However, the CMA has now issued a remedies working paper to gather opinions on its proposed package's effectiveness.

The document provisionally concludes that a legally binding commitment from Vodafone and Three to carry out the suggested network integration and investment programme would "significantly improve the quality of the merged company's mobile network, boosting competition between mobile network operators in the long term and benefiting millions of people who rely on mobile services".

The CMA also discovered that short term protections would be necessary to ensure that retail consumers and mobile virtual network operators "can continue to secure good deals during the initial years of network integration and investment roll-out."

Stuart McIntosh, chair of the inquiry group leading the probe, stated: "We believe this deal has the potential to be pro-competitive for the UK mobile sector if our concerns are addressed."

"Our provisional view is that binding commitments combined with short-term protections for consumers and wholesale providers would address our concerns while preserving the benefits of this merger."

"A legally binding network commitment would boost competition in the longer term and the additional measures would protect consumers and wholesale customers while the network upgrades are being rolled out."

A final decision is anticipated to be made before the 7 December deadline.

In a joint statement, Vodafone and Three said: "The parties welcome the CMA's recognition that the significant improvements in network quality delivered by their joint network plan will, 'boost competition between mobile network operators in the long term and benefit millions of people who rely on mobile services'."

"The merger is a once-in-a-generation opportunity to transform the UK's digital infrastructure which lags significantly behind its European peers and for more than 50 million UK customers to benefit from a vastly better mobile experience."

"Vodafone and Three will need to study the working paper in detail. From what the CMA has communicated so far this morning, we believe it provides a path to final clearance."

"An appropriate balance appears to have been struck by ensuring that the significant benefits of the merged company's investments can be realised in full and at pace to the benefit of the country and its citizens, while addressing the CMA's stated concerns."

"However, it is essential that balance is preserved through to the end of the process, reflecting that the parties have offered extensive remedies, including by making their future network roll-out fully enforceable."

"The merger will be a catalyst for positive change. It will bring significant benefits to businesses and consumers throughout the UK, and it will bring advanced 5G to every school and hospital across the country."