Ministerial Support Team 4th Floor 100 Parliament Street London SW1A 2BQ www.gov.uk/dcms enquiries@culture.gov.uk

20 November 2015 Our Ref: 275074/SJA Ms Frankie Spagnolo frankie@millennialmobility.com

Dear Ms Spagnolo, Thank you for your e-mail of 12 November, to the Minister of for Culture and Digital Economy, Ed Vaizey MP, explaining the concerns of your association regarding the proposed takeover of EE by BT and the merger of the two companies. I am replying on behalf of the Ministerial Support Team.

I am pleased that you have written to the Competition and Markets Authority (CMA) expressing your views, as the CMA is the independent competition authority that is investigating and ruling on this merger. The CMA’s decisions are made independently of Government and Ministers have no role in the process. You refer to the ‘Strategic Steer’, which sets out the Government’s priorities for competition for the CMA. Although CMA does not have a legal obligation to follow the steer, I am sure that in general the steer is well aligned with the CMA’s own priorities.

You mention that you have written to the European Commission (EC) about the separate issue of the proposed takeover of Telefonica UK (O2) by CK Hutchison Holdings (CKHH) Ltd. CKHH and the subsequent merger of Three and O2, although you suggest that, in your view, it would be better for the CMA to consider both mergers. As you are no doubt aware, CMA has applied to the EC for jurisdiction in the CKHH/O2 merger and a decision on this is expected in mid-December.

I am sure that Ofcom will also find your views on the UK Mobile Virtual Network Operator (MVNO) market helpful in its work on its strategic review of Digital Communications (DCR). Ofcom, including its CEO Sharon White, has expressed its view that competition in the mobile market in the UK is important in delivering innovation, investment in the infrastructure and good value for consumers and businesses, sentiments with which I am sure you agree. The competition provided by MVNOs is an important part of this, which I am sure Ofcom and the CMA both take account of in their decisions. The rulings by the European Commission on recent mobile mergers in Austria and Ireland show that it too is

aware of the value of MVNOs being part of the competitive ecosystem.

Department for Culture, Media & Sport

I hope this information is helpful and once again thank you for contacting the Department.

Yours sincerely,

Syed Ali

E: enquiries@culture.gov.uk