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Old 08-03-2010, 18:21   #9
m419
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Join Date: Jul 2005
Location: London
Services: Virgin XL TV, 20MB Broadband,Virgin XL Phone,Hutchison 3G Pay Monthly
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Re: Is 3 UK for sale?

No its not going to happen,

3 will only sell its UK arm if it was to sell its italian arm as well, and thats certainly not going to happen since it's doing well, the italian arm currently as nearly 8 million customers.

Vodafone are unlikely to acquire Hutchison 3G UK for operational reasons, both 3 and Vodafone run on very different frequent and would be very costly to modify.

Secondly, Vodafone cannot acquire it because 3 has merged its network infrastructure with T-Mobile which will shortly become a 50/50 venture company with Orange, Vodafone are supposed to be merging its 3G infrastructure with O2's. Acquiring 3 would make no sense at all at this stage.

Orange and T-Mobile would not be able to acquire 3 for competition reasons even though they run on similar frequences and would have been a suitable acquisition for either T-Mobile or Orange, now that they are merging they won't be able to acquire 3.

BT would not be interested either purely for product portfolio rationing reasons, BT are focusing on building a better broadband for the UK and are directing there investments on upgrading existing services.

Cable and Wireless would not be really interested at re-entering the UK mobile phone market purely for financial and product portfolio reasons, there is also a demerger happening in the company.

China Mobile, could be a possible buyer, it is the worlds largest in terms of subscribers.

But to be honest I doubt Hutchison 3G are going to be selling the UK arm after the latest investments and improvements they have made.

In fact a rebrand of the company would be more suitable and wipe the floor with Orange.

If Vodafone want to lead the market, acquiring O2 would be the most suitable, I cannot see Telefonica spending much more money on O2 UK.
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