11/28/2014 11:05:00 AM
Three's owners touted for takeover of O2 or EE
Three’s owners Hutchinson Whampoa are preparing a bid for EE or O2 according to reports.
EE and O2 have both confirmed that they are in talks with BT over a potential sale.
Reacting to the news analyst firm CCS Insight’s director of multi play and media Paolo Pescatore said it was little surprise that Hutchinson has entered the fray: ‘It makes sense given what we’ve seen in other markets. In the UK we are moving towards multi play environment that leaves many operators in a vulnerable position, particularly as its apparent BT are moving aggressively into the mobile space. Three see that the future is around multi play, you’ll see further deals in the future and people seeking the assets needed to complete a multi play offering.
‘Operator margins are being squeezed all the time which is driving the convergence of services. It’s been proven that the move devices a person owns the more likely they are to seek one provider. Given that we haven’t seen much consolidation in the UK market it’s no surprise that it’s happening now.’
Read our analysis of which operator BT should invest in by clicking here.