It’s no secret that BT is eyeing a return to the mobile market, by way of either EE or O2, but its movement may have come at a cost. According to Reuters, BT’s intentions have caught of attention of Hutchison Whampoa, owner of the UK’s fourth biggest operator Three (and actually once owned Orange), which is now said to be readying a bid for one of the two mobile providers. BT will reportedly decide its course of action in the coming weeks, which could prompt rival bids from Chinese company.
While it’s likely these potential deals would require approval from both UK and European regulators, O2 is currently seen as the less complicated option. EE is Britain’s biggest carrier, allowing it to command a higher price than its rival. However, its size could prove to be a problem as watchdogs would seek to block anti-competitive acquisitions. After all, the market would consolidate and we’d only have three major carriers to choose from. O2 doesn’t have that problem; it doesn’t own nearly as much spectrum, but combined with Three’s allocation, it could give it some parity with its rivals. Although, after O2 sold off its broadband business to Sky, it could trail other providers as they transition to a quad-play model. Christmas is coming, and that means more spending — for BT and Hutchison, those bills could run into the billions.
[Image credit: Bluewater]
Filed under: Cellphones, Wireless, Mobile
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Source: Reuters