Three to buy O2 Ireland for €780 million

watty wrote: »

AFAIK Three only has 3G 2100 spectrum.

mid 2015-2030 Assignments (2021 expiry for 2100 band)
| | | |

800| | | |
900| | | |
1800| | | |
2100| | | |

current 2013-2015 Assignments (2021 expiry for 2100 band)
| | | |

800| | | |
900| | | |
1800| | | |
2100| | | |

3's spectrum is fully liberalised for 3G/4G use
O2's 1800 spectrum GSM only until 2015

When did Three get 900 & 1800MHz?
What were they doing with it?
How long after getting it did they do anything?

On a related note will sale of GSM only phones be banned or consumer warned 2 years before GSM is turned off? The 6 months notice the operator has to give Comreg is hardly enough and when is public told?

If you want long battery life and/or big real buttons you don't buy a Smartphone. Smartphones are poor usability and poor battery life and also pointless if you want just phone calls + a bit of SMS. Almost all non-Smart phones for sale currently are GSM only.
Almost all Smart phones are now touch screen. The Candybar, Flip and Slider Smart phones are gone. Only a few blackberry style Smartphones have buttons and they are awkward shape for pockets.

The hyped 800MHz allocations and 900 re-purposing from GSM to 3G will just mean more dropped voice calls and only use for data if 800MHz was uplink and 900 MHz downlink for one operator.

You would save the middle of band duplex guard band wasted on 800MHz and 900MHz, extra spectrum.
Take Digiweb's 872/921 and GSM-R in the 900MHz band too.
The guard would be 862 to 872 (864 to 868 is SRD "licence" free low power devices and could continue to be so). The 900MHz band was designed for 0.2Mbps GSM channels. It's too small for minimal 3x 5MHz per operator or sensible 3 x 20MHz per operator (Duplex so more than twice the spectrum needed). So too is 800MHz.

Comreg & Ofcom. Zero innovation and purely out to maximise Licence Revenue.

20MHz channels allows peak 100Mbps and average 4Mbps to 8Mbps rather than peak 20Mbps and average 1Mbps to 2Mbps of 5MHz channels.

You need triplets (3 x channels) to build any kind of sensible cellular network without major holes.

So anyone with 2 x whatever needs to split it to 5MHz channels. 2 x 5 MHz is joke allocation for 3G or 4G. Only works for GSM (GSM uses 0.2MHz channels).
Obviously the scheme was to raise revenue from licences not use Spectrum efficiently or really have better Mobile Internet.

Re-allocation of spectrum I think did happen in UK, the merged outfit as a condition of allowing merger had to flog off part?

But the only re-allocation that makes sense is ALL of it to a single Wholesale operator (which could be owned jointly by all the operators, Comreg would oppose this sensible idea on spurious ground of "lack of competition")

clohamon wrote: »

Very hard to see how EU/ComReg could just arbitrarily re-allocate spectrum that was purchased fairly (we presume) at auction on the basis of a seventeen year business plan.

Re-allocating spectrum does not address the issue of market dominance. If that's the issue.

When T-Mobile and Orange merged their mobile businesses to become Everything Everywhere Limited the EC required the merged company to sell part of its 1800MHz spectrum (2X15MHz) by a specific time. It was sold to Three(UK).

We'll see what happens in the coming months, the provisional deadline for the EC decision is the end of April next

http://ec.europa.eu/competition/elojade/isef/case_details.cfm?proc_code=2_M_6992
http://europa.eu/rapid/press-release_IP-13-1048_en.htm

clohamon wrote: »

Isn't GSM allowable under the new licences?

Yes.

Fogmatic wrote: »

I looked up GSM, and it seems to mean 2G (is that right?)
Re the idea of turning it off, I hope it wouldn't apply to 2G-only areas?

Yes, 2G refers to GSM and there is no plan to switch it off. 2G only areas will in due course be upgraded to at least 3G.

clohamon wrote: »

Who said GSM would be turned off? Isn't GSM allowable under the new licences? Given the energy requirements of 3G vs 4G it might be a better idea to turn off 3G rather than GSM.

The Equipment vendors are persuading Mobile Operators that should replace GSM with 3G. 02 and others have done 900MHz 3G trials. The operators only have to give Comreg 6 months notice.

Voice calls & SMS are same price on ANY mobile system and are about x10 more profitable than Data. Though 4G ONLY has VOIP, you'd need 3rd party VOIP to use data rate other than voice rate. The Operators own VOIP on 4G will be similar price to existing Voice calls. If they do it at all. You may find a Smart phone with 4G uses GSM or 3G depending on coverage for all voice calls and never does 4G for voice calls. VOIP and Data is more problematic for handing over between cells or networks without dropping a call. It can be done. A lot of the development was done testing handover between 3G/GSM to "VOIP on WiFi on Broadband" and "VOIP on WiFi on Broadband" to 3G/GSM. It's not simple and voice on 4G looks pretty much like VOIP on WiFi to a network. Voice on 4G such that it would interwork like ordinary mobile was an afterthought. The original spec was pretty much plain TCP/IP & UDP via modems on Computers. Only 3rd party applications, network purely as Internet connection and no operator applications at all.

Once the Introductory stuff is over expect 4G to be expensive. 3G is a ghastly system. GSM is superior for voice and slow data. 4G superior for faster but bursty data.

In 5MHz of spectrum GSM EDGE can support four times as many users (25 x 200 KHz channels) reliably as 3G at the SAME speed! 3G/HSPA is only fast if there are less than 5 simultaneous connections per sector. EDGE2 allows peak 2.4Mbps instead of 1.2MBps of Edge but because of Vendor pressure selling 3G it hasn't been implemented in Ireland. 2.4Mbps is higher than average speed of 21Mbps 3G/HSPA+! Also no cell breathing and in 5MHz spectrum in SAME 900MHz and topology if the EDGE+ users were all getting 2.4Mbps the 3G /HSPA+ on the "21Mbps" mast would see less than 1.2Mbps as it is rubbish CDMA. CDMA is designed for SINGLE pairs of encrypted users, a stupid protocol for 1 to many Mobile.

But GSM has been given its death notice by vendors. There is even an IP only version of GSM (ERAN). While 4G can be less power hungry than 3G, for voice GSM is best. Never again will we have phones that last a week. It's charge every night.

The Cush wrote: »

current 2013-2015 Assignments (2021 expiry for 2100 band)
|

O2

|

3

|

Vodafone

|

Meteor

800|

2x10

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-

|

2x10

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2x10

900|

2x10

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2x5

|

2x10

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2x10

1800|

2x15

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2x10

|

2x15

|

2x20

2100|

2x15

|

2x15

|

2x15

|

2x15

mid 2015-2030 Assignments (2021 expiry for 2100 band)
|

O2

|

3

|

Vodafone

|

Meteor

800|

2x10

|

-

|

2x10

|

2x10

900|

2x10

|

2x5

|

2x10

|

2x10

1800|

2x15

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2x20

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2x25

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2x15

2100|

2x15

|

2x15

|

2x15

|

2x15

3's spectrum is fully liberalised for 3G/4G use
O2's 1800 spectrum GSM only until 2015

Combined 3/O2 spectrum if the merger was to go through unchanged

current 2013-2015 Assignments (2021 expiry for 2100 band)
| | |

800 (6 blocks)| | |
900 (7 blocks)| | |
1800 (12 blocks)| | |
2100 (12 blocks)| | |
|||
|16 blocks|10 blocks|11 blocks
|||
800/900|5 blocks|4 blocks|4 blocks
1800/2100|11 blocks|6 blocks|7 blocks

mid 2015-2030 Assignments (2021 expiry for 2100 band)
| | |

800 (6 blocks)| | |
900 (7 blocks)| | |
1800 (15 blocks)| | |
2100 (12 blocks)| | |
|||
|18 blocks|12 blocks|10 blocks
|||
800/900|5 blocks|4 blocks|4 blocks
1800/2100|13 blocks|8 blocks|6 blocks

This is what Eircom/Meteor wants the EC to do with the spectrum the merged company will hold according to another Irish Times article last week

Eircom’s view is that four blocks of spectrum (in the 1800 and 2100 megahertz categories) should be allocated to Meteor to help level the playing field. It also wants one of Three/O2’s blocks at 900 megahertz put out to tender.

http://www.irishtimes.com/business/sectors/financial-services/cantillon-juggling-for-position-on-bandwidth-1.1654088

Press release from 3 Ireland this morning

3rd February 2014 – Three Ireland can confirm that it has received a Statement of Objections from the European Commission which sets out the concerns of the Commission in relation to Three’s proposed acquisition of O2 Ireland. We are analysing the Statement and we will be responding to the Commission’s concerns.

The issuing of a Statement of Objections was not unexpected in the context of a Phase 2 merger investigation and the previous statements by the Commission that it would take a close look at in-country telecoms mergers going from 4 to 3 operators.

The Irish mobile market is currently characterised by one clear dominant market leader with the 3 other operators lagging behind. Without Three’s acquisition of O2 Ireland and the scale it can achieve, this gap will only increase. Competition in Ireland will be better served by three credible operators with sufficient scale to compete for a total market of 4.6 million, than by the current market structure.

The acquisition of O2 Ireland will provide Three with the scale and financial strength necessary to compete aggressively in the market to the benefit of Irish consumers. It will give Three the means to challenge the number one player in the Irish market by rolling out a state of the art 4G/LTE network and providing the best value and service to its customers.

In our view, the acquisition will increase competition and bring much needed investment to the Irish market. Nonetheless, Three will put forward strong and effective remedies to address the Commission’s concerns. Three will detail these and other points in our response to the Commission’s Statement of Objections, and are confident that we can convince the Commission of the pro-competitive benefits of the proposed acquisition. We will continue to work with the Commission in order to achieve a positive outcome.

http://press.three.ie/press_releases/three-ireland-comments-following-the-issue-of-the-commissions-statement-of-objections/

http://www.irishtimes.com/business/sectors/technology/ec-sets-out-objections-to-three-s-acquisition-of-02-1.1677680
http://www.independent.ie/business/irish/3-ireland-confirms-objections-from-european-commission-over-o2-acquisition-29974474.html
http://www.rte.ie/news/business/2014/0203/501914-3-ireland/

The Cush wrote: »

From today's Irish Times - http://www.irishtimes.com/business/sectors/technology/objections-to-three-s-takeover-bid-for-o2-set-out-by-european-commission-1.1678403

2. Spectrum
Secondly, the commission is concerned that the combined entity will have too much spectrum, with both O2 and Three having spent substantial amounts in the 2012 €480 million spectrum auction overseen by Comreg, the regulator.

The commission is understood to have asked Hutchison/ Three if it would be prepared to divest some of the spectrum of the combined entity.

Three and O2 together own three blocks of 900 megahertz spectrum compared with two each for Meteor and Vodafone. The combined entity would also own seven blocks of 1,800 megahertz spectrum, more than twice the amount owned by Eircom and also more than Vodafone.

ComReg ties up its two year consultation into spectrum trading just in time.
http://www.comreg.ie/_fileupload/publications/ComReg1411.pdf

sawdoubters wrote: »

expect phone bills to go up 20 euro month

How so?

From yesterday's Sunday Business Post

Meetings planned with Eircom and Vodafone

Three Ireland is to hold a series of closed door meetings with industry rivals Eircom and Vodafone, as it attempts to assuage European competition concerns over its proposed €850 million takeover of O2.

The telecoms company is hoping to agree terms with its rivals about a package of potential remedies designed to overcome fears in Brussels that the deal would lessen competition here.

and EC officials

Three Ireland will also hold bilateral meetings with European Commission officials, who will in turn liaise with interested Irish stakeholders, including rivals operators, communication regulator Comreg and the Competition Authority.

Agreement with other operators is key

The company has privately acknowledged that securing the agreement of Vodafone and Eircom, which owns the Meteor mobile network, is key to easing compeptition concerns.

Sunday Indo article - http://www.independent.ie/business/irish/decision-time-for-eu-on-3-irelands-780m-bid-for-o2-30033113.html

The European Commission is holding its final oral hearings this week on whether to allow the mobile takeover.
...
Vodafone, which would see its large lead in the Irish market narrowed if the deal went through, will argue against the takeover on Tuesday.

Eircom, which has offered qualified support for the takeover, will also outline concerns over network sharing and 4G spectrum allocation.

UPC, which could harbour hopes of bidding for O2 Ireland or 3 Ireland if the takeover fails, has declined to comment about its plans to testify against the acquisition in front of the Commission.

Senior Irish telecoms executives think the Commission, which is due to issue a verdict on the takeover bid by March 24, has hardened its position on the core issue of reducing the number of operators here from four to three.

Three Ireland could exit the Irish market if the takeover fails

If the takeover does not proceed, it raises the prospect of 3-owner Hutchinson Whampoa seeking to exit the Irish market. That would leave any potential buyer facing the prospect of turning the operator around.

The departure of Hutchinson Whampoa would also be bad news for Irish industry at a time when money is still scarce. The Hong Kong-based company has been a significant investor in infrastructure projects in other countries where it operates.
...
For its part, Hutchison Whampoa is expected to argue that it cannot justify further investment in its loss-making Irish network if the deal fails to go through. The operator is currently losing €50m per year in Ireland, having spent over €1bn since its launch a decade years ago. The operator has struggled to win market share, gaining just 8 per cent in that time.

Report on today's hearing in Brussels

Hutchison's Three Ireland is prepared to sell radio spectrum and continue a network sharing deal with a rival in order to win EU approval of its $1 billion (600 million pounds) bid for Telefonica's O2 Ireland, a source familiar with the matter said on Tuesday.

...

"Hutchison will offer to sell spectrum to MVNOs (mobile virtual network operators) and guarantee to keep in place a network sharing agreement with eircom," the source told Reuters, adding that Hutchison would submit its offer to the European Commission within two weeks.

...

Hutchison confirmed it has not offered any concessions to regulators up to now.

"We haven't put any remedies forward; whatever is being said is speculative. Hutchison has said that it is very happy to produce strong remedies as it wants a positive outcome as soon as possible," said company spokesman Neil McMillan.

The company set out the case for allowing its 02 Ireland deal before senior Commission officials and national competition officials at a closed door hearing on Tuesday.

Executives from eircom, Vodafone, Tesco Ireland, which runs a virtual mobile network in Ireland, cable operator Liberty Global and BT Communications Ireland also attended the session.

http://uk.reuters.com/article/2014/02/25/uk-hutchison-telefonica-eu-idUKBREA1O1DL20140225

EU to take a hardline approach to the 3 Ireland takeover of O2 following the lessons learned from Three Austria's purchase of Orange Austria and the failure to increase competition in that market

The European Union’s failure to stoke competition when Hutchison Whampoa Ltd. bought a rival Austrian unit should be a warning for EU probes into other telecommunications deals by Hutchison and Telefonica SA, said the head of the nation’s antitrust authority.

Prices surged after EU watchdogs waved through Hutchison’s purchase of wireless carrier Orange Austria even after regulators imposed conditions aimed at mitigating the effect of losing one of the nation’s four operators. The EU should heed that lesson as it examines two deals that would also knock out a competitor

...

Ireland’s and Germany’s telecommunication regulators, the Commission for Communications Regulation and the Federal Network Agency, inquired about Austria’s experience with the merger, Gungl said. The two agencies were curious about the RTR’s dealings with the European Commission and also wanted to know what Austria would do differently in another takeover decision, he said.

http://www.businessweek.com/news/2014-02-25/hutchison-austria-seen-as-lesson-for-eu-in-e-plus-o2-probes

http://www.irishtimes.com/business/sectors/technology/hutchison-ready-to-sell-spectrum-to-get-o2-ireland-1.1705503
http://www.rte.ie/news/business/2014/0226/506800-o2-three-europe/