How might O2’s merger with Virgin Media affect consumers?

Ben Chapman asks whether consumers could gain from the move, or whether the reduced competition could prompt a hike in prices

The move will create an even bigger rival for EE-owner BT (Getty)

The planned merger between O2 and Virgin Media makes a lot of sense for the two companies – combining O2’s position as the UK’s leading mobile network with Virgin’s broadband and TV business.

Combining the two firms would certainly create a genuine challenger to BT, but will it be good for consumers?

Jose Maria Alvarez-Pallete, boss of O2’s owner Telefonica, says – perhaps unsurprisingly – that the deal will be a game changer for the UK. He claims the new company will have the size and financial clout to invest billions in the UK’s digital infrastructure.