Calls have been made for a probe into plans for a £31bn merger of mobile chain O2 and broadband giant Virgin Media.
The move, which is expected to complete in the middle of next year, would create one of the UK's largest entertainment and telecoms firms and a major rival to BT.
Liberty Global, which owns Virgin Media, and Spain's Telefonica, which owns O2, said they had agreed terms for joining forces.
The new company, which will challenge BT and Sky by offering consumers competitive bundles of TV, mobile and broadband packages, will have 46 million customers and £11bn in revenue.
Consumer organisation Which? called on the Competition and Markets Authority to investigate the deal saying it could have a "significant impact on consumers".
Rocio Concha, chief economist at Which?, said: “The proposed merger of two of the biggest players in the telecoms industry could have a significant impact on consumers, so the competition regulator should investigate closely.
“Neither provider stands out in our recent customer satisfaction surveys, and any merger should only be allowed to go ahead if it delivers positive outcomes for consumers.”
O2 has about 34 million mobile phone users, while Virgin has about six million broadband and cable TV customers and another three million mobile users.
As well as having its own subscribers, O2 provides the network for Tesco Mobile, Giffgaff and Sky Mobile.
Telefonica chief executive Jose Maria Alvarez-Pallete said: "Combining O2's number one mobile business with Virgin Media's superfast broadband network and entertainment services will be a game-changer in the UK, at a time when demand for connectivity has never been greater or more critical."
Mike Fries, chief executive of Liberty Global, said it was only ever “a matter of time” until there would be more convergence in the highly competitive UK media and telecoms market.
“BT and EE together are a powerful combination in our minds,” he said, referring to BT’s £12.5bn deal to buy the mobile company in 2016. “Our rationale was that it was just a matter of time, convergence has been slower in this market. With Virgin Media and O2 together the future of convergence is here today.”
“We are both coming to the joint venture with the expectation we will remain partners,” Mr Alvarez-Pallete added. “We don’t come into this with the expectation that we will turn right or left at a certain point of time. If a listing were to come down the road it can provide a transparency of value and give people the chance to own part of a national champion.”
Philip Jansen, the chief executive of BT, said the new super-firm in the UK market would not make BT speed up its own investment plans.
Meanwhile, Ernest Doku, mobiles expert at comparison site Uswitch, said: "Both the O2 and Virgin Media brands are expected to remain in the short-term, but it will be interesting to see what this means for existing customers in terms of products and access to extra services, such as O2 Priority.
"Nevertheless, for all customers there is the exciting prospect of greater breadth of entertainment and faster speeds to look forward to."
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