3GScottishUser
16th July 2006, 09:26 AM
It has been reported that there have been talks between Hutchison Whampoa (owners of 3) about a possible merger of their 3 Italia business with incumbent network Wind.
Could this be the much touted exit strategy for the struggling 3 businesses in Europe?
HWL would gain greatly from the disposal of their folly into 3G as none of their efforts have made any significant progress and have been draining the rest of the very sucessful business since March 2003. Network sharing in Australia and combining existing Orange and 3 businesses there and in Hong Kong have produced savings that could make those operations sustainable but elsewhere the cost to establish new networks has been crippling and with the spread of 3G by other operators there appears little alternative other than to cut and run and save face by merger rather than outright disposal. It appears KPN and NTT DoCoMo made a shrewd decision when they took the hit and left the playing field in the UK in 2004/5.
Could this be the much touted exit strategy for the struggling 3 businesses in Europe?
HWL would gain greatly from the disposal of their folly into 3G as none of their efforts have made any significant progress and have been draining the rest of the very sucessful business since March 2003. Network sharing in Australia and combining existing Orange and 3 businesses there and in Hong Kong have produced savings that could make those operations sustainable but elsewhere the cost to establish new networks has been crippling and with the spread of 3G by other operators there appears little alternative other than to cut and run and save face by merger rather than outright disposal. It appears KPN and NTT DoCoMo made a shrewd decision when they took the hit and left the playing field in the UK in 2004/5.