Sept 13 (Reuters) - Competition and Markets Authority:

* MERGER UPDATE: VODAFONE ( VOD ) / THREE

* MERGER COULD LEAD TO TENS OF MILLIONS OF MOBILE CUSTOMERS

HAVING

TO PAY MORE

* WILL EXPLORE POTENTIAL SOLUTIONS TO ITS CONCERNS BEFORE

FINAL

DECISION BY 7 DECEMBER.

* MERGER COULD IMPROVE QUALITY OF MOBILE NETWORKS, BUT

INCENTIVES

TO FOLLOW THROUGH ON INVESTMENT ARE UNCERTAIN

* MERGER WOULD NEGATIVELY IMPACT 'WHOLESALE' TELECOMS

CUSTOMERS

* CONSIDERS THAT CLAIMS ON IMPROVING QUALITY OF MOBILE

NETWORKS

ARE OVERSTATED

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