(Reuters) – Britain’s competition watchdog stated Thursday that a UK telecom tower agreement between Cellnex in Spain and CK Hutchison, based in Hong Kong, could raise competition concerns and lead to higher mobile fees.

According to the Competition and Markets Authority, (CMA), CK Hutchison’s investigation revealed that it should have sold its passive infrastructure assets including masts and towers to an alternate buyer than Cellnex, market leader.

Cellnex purchased 24,600 European telecom towers from CK Hutchison last year for 10 million euros (11.31 billion).

The CMA stated that CK Hutchison could have a variety of commercial options for these assets, and Cellnex wasn’t the only way to achieve its broader commercial goals.

According to the regulator, the sale of the mobile network operator could lead to higher pricing or poorer quality services. This would have a negative impact on users who use mobile networks in the UK.

Cellnex stated that it is reviewing CMA findings, and will respond to any “practical alternatives remedies” requested by the regulator.

The company stated that the agreement would continue to improve mobile coverage in the UK, with 5G included.

CK Hutchison stated that it disagrees with CMA findings and will respond to any concerns raised by regulator.

In May, the CMA opened an investigation into the deal and sent it to an investigator in July.

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