Fok calls on EC to support Austrian merger, new MVNOs

News Wireless Austria 25 SEP 2012
Fok calls on EC to support Austrian merger, new MVNOs
Hutchison Whampoa Group managing director Canning Fok has called on the European Commission (EC) to support the merger of Austria's two smallest mobile network operators and in turn promote the launch of new, competitive MVNOs. After analysing a Statement of Objection issued by the EC on the proposed purchase of Orange Austria by 3 Austria, Hutchison insists that the EC's conclusions are wrong and do not reflect the market situation in Austria. Fok also argues that the EC's concerns about the merger reducing the number of mobile network operators from four to three are unfounded due to the small size of the Austrian market. The combined entity will still only control 22 percent of the market, with Hutchison aiming to increase this to 30 percent by 2015 if the merger is completed. Its rival operators will still control 78 percent of the market between them. Hutchison insists that the merger will allow 3 Austria to accelerate its business plan with an earlier roll-out of LTE, new products and technology, as well as aggressive pricing.

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