CK Hutchison is stepping up its offer to allay competition concerns about its proposed takeover of O2 UK, the Financial Times reports. While the European Commission and Ofcom have reportedly pushed for the company to support a fourth network in the UK, Hutchison considers this unworkable and is instead proposing to reserve 30 percent of its network for one or more newcomers, according to the FT's sources.
This would go further than a MVNO deal, offering permanent access to a share of the network or even partial ownership for one or more new players. This may include a "starter" package of spectrum and ownership of some O2 network sites, the sources said. Hutchison has lined up potential takers for the network capacity, including Sky, which is interested in a long-term deal, the report said. Other candidates include Virgin Media, TalkTalk and France's Iliad. Hutchison also offered to sell O2's 50 percent stake in Tesco Mobile.
The EC is reportedly keen to seen the remedies in place immediately after the deal closes, especially given recent evidence that prices jumped in Austria after a similar consolidation move by Hutchison there.
