CK Hutchison offers spectrum in Three/O2 pledge

CK Hutchison offers spectrum in Three/O2 pledge

Three UK owners CK Hutchison has offered to give up 30% of its spectrum in a bid to seal its £10.25bn takeover of O2.

The Hong-Kong based company has offered its spectrum as part of a number of additional remedies in order to alleviate concerns surrounding competition, the Financial Times has reported.

CK Hutchison’s pledge would see 30% of its network capacity given up to help bolster rival mobile operators, this could be given to a single network or split between smaller companies.

The business has put Sky forward as a potential candidate, with TalkTalk, Virgin Mobile and Tesco Mobile also believed to be under consideration.

European talks

The EC has previously demanded that Hutchison be forced to give up spectrum in order to set up a fourth, fully separate network, a remedy that has been supported by UK regulator Ofcom.

However, the Hong-Kong company has said that divesting 30% of its spectrum would be a more realistic solution as another network would require significant investment.

The announcement comes a week after CK Hutchison met with the European Commission in order to convince the regulator to allow the deal.

The company has taken a number of steps to try and seal the deal, with MD Canning Fok publically promising to not raise prices or harm competition in the UK mobile market.

However the release of a document on the Austrian mobile market, as reported by The Telegraph, presented evidence that a similar acquisition between Three and Orange had increased prices for the consumer. This was despite mobile spectrum being sold off to 16 MVNOs in the region.



Please wait...

Please write code to prove you're human