08:26 AM EST, 12/05/2024 (MT Newswires) -- (Updates to add a response from Vodafone and Three in the last two paragraphs.)

Vodafone Group's ( VOD ) proposed merger with Three can proceed provided both companies sign binding commitments "to invest billions" to deploy a 5G network across the country over the next eight years, the UK's Competition and Markets Authority said Thursday.

The regulator also said the merged company must cap mobile tariffs and give mobile virtual network providers with preset contractual terms for three years.

The regulator also said the network commitment and protections for both retail and wholesale buyers will address its competition concerns.

Vodafone and Three welcomed the authority's decision and said they expect the merger to be completed in H1 2025. The companies added that they plan to invest 11 billion UK pounds ($14.01 billion) in a UK 5G network.

"The merger is a once-in-a-generation opportunity to transform the UK's digital infrastructure," the companies said.