The letter responds to concerns raised about the proposed takeover of EE by BT. It notes that the Competition and Markets Authority (CMA) is independently investigating the merger. While the government's priorities are outlined in the 'Strategic Steer', the CMA makes its own independent decisions. It also discusses the separate proposed takeover of Telefonica UK by CK Hutchison, which the CMA is seeking jurisdiction over from the European Commission. The letter writer believes the views expressed on the importance of competition in the mobile market from MVNOs (Mobile Virtual Network Operators) will be helpful to Ofcom and the regulators in their considerations.

1. 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.

2. 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