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Wednesday, March 25, 2015

3UK Finalises Deal to Buy O2 from Telefonica for £10.25bn if antitrust/regulators agree

UPDATE Three UK Finalises Deal to Buy O2 from Telefonica for £10.25bn - ISPreview UK:

"On top of that there’s the increasingly complex web of Network Sharing and Mobile Virtual Network Operator (MVNO) deals to consider, with both TalkTalk and Sky Broadband having signed MVNO deals with O2.

 The MVNO deals aren’t likely to be much of a concern due to O2/Three UK’s (aka – Throat, as we like to call them) lack of a fixed line business, although O2 also has a network sharing agreement with Vodafone and Three UK has one with EE. Somewhere along the lines a difficult decision will have to be taken because that situation may soon start to look untenable.

 Meanwhile Three UK’s customers will be hoping that the operators low-cost and data centric approach isn’t sacrificed, while O2 users will be wary of any potential quality loss to the now more budget conscious owner. Both operators also have fairly recognisable brands, but Hutchison Whampoa may well wish to move them under a single umbrella.

 In any case we’ll have to wait and see how everything turns out, although it could a year before everything is completed (the same as with BT’s purchase of EE) and that’s assuming the competition authorities don’t raise concerns."



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