Consolidation on the cards for UK mobile operators

Following the purchase of EE by BT, the UK mobile market may see a consolidation of carriers with 3 taking over O2.

O2 is owned by Spanish network operator which is struggling with heavy debts. Telefonica was in negotiations with BT about possible sale but any deal fell through when BT chose EE.

3 is owned by Hutchison of Hong Kong which is owned by Li Ka-shing.

3 is expected to have to pay $13.6 billion to buy O2.

A combined 3 and O2 would be the UK’s biggest mobile operator with 31 million subscribers.

An alternative option for Telefonica is to IPO O2.

david manners

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via Yuichun