Representatives from Vodafone and Three have assured MPs that their intended merger will not result in price increases, even with the decrease in the number of rivals in the mobile market.
The UK-based operations of the firms will be merged, resulting in the formation of the largest mobile network in the UK, with a projected total of 27 million customers.
Regulatory approval is still required for the transaction to be completed.
The Unite union has warned that bills could increase by as much as £300 a year should the project come to fruition.
Presently, four major mobile operators are active in the UK: Vodafone, Three, EE (belonging to BT), and Virgin Media O2.
On Tuesday, George Stevenson, a researcher for Unite, told the Business and Trade Committee that a merger between Vodafone and Three would not be beneficial to consumers.
He declared that the UK was fully able to accommodate four or more mobile network operators.
If the merger is executed, it will result in an increase in prices and an increase in profits.
However, according to Three general counsel Stephen Lerner, there were no anticipated price increases related to the merger in the companies' joint business plan.
He stated firmly that it had no bearing on the deal and that there were no intentions to raise prices.
The firms declared that they were in discussion with the Competition and Markets Authority (CMA), with the purpose of investigating the possible consequences of the merger.
Mr Lerner expressed his confidence that the CMA will sanction the merger, which the organisations maintain will equate to £6bn in investments during the initial five years and £11bn in aggregate.
Vodafone contended that, if permitted, the merger could in fact reduce invoices as the new company would be able to invest more in the United Kingdom and thus decrease the expense of web service.
Andrea Dona, Vodafone UK's network and development director, stated that the joint enterprise intended to use 5G to provide internet access with the same speed and capacity as fibre broadband to 82% of UK households.
The results of our study indicate that it is possible to achieve up to a £15 per month decrease in the cost of the bill, if an alternative to the current fibre to the home is employed, he stated.
He stated that the deal may even bolster competition, as it would enable the new company to battle against other providers of mobile services in the MVNO market.
MVNOs avoid having to pour millions into creating their own system of masts and networks by licensing portions of existing operators' infrastructures, subsequently providing budget-friendly deals.
In the UK, there is a significant presence of companies in the market for this service - Tesco Mobile, Lycamobile, Giffgaff all use mobile networks provided by EE or Virgin Media O2.
According to Mr Dona, almost all players in the market depend on two networks, since they can supply the necessary volume and cost advantages for MVNOs.
Upon entering, we will be able to increase the available wholesale competition for MVNOs, providing more options for them and more opportunities for our customers.
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