Three Ireland dispels O2 customer concerns

PAMELA NEWENHAM and CONOR POPE

O2 customers concerned about the proposed takeover of the mobile operator do not need to worry in the short term, as the deal will not be given the green light by the Competition Authority for at least six months, a spokeswoman has said.

Some 02 customers yesterday expressed concern about the coverage offered by Three in rural parts of the State. In response, a spokeswoman for Three told The Irish Times that, in the past, the telecoms firm did have some coverage issues in rural parts of Ireland but it had extensively upgraded its network in recent months and would also be in a position to use the 02 infrastructure once the takeover is completed.

"The combined network will also deliver very real benefits to customers outside the major urban areas, as the increased scale will allow Three to extend its rural network investment programme beyond 2014," Three Ireland chief executive Robert Finnegan said.

He added that the acquisition would create new competitive dynamics in the Irish telecoms market.

“Our combined 37.5 per cent market share gives us the scale and financial strength to compete even more aggressively in the market to the benefit of consumers.”

The acquisition will make Three the second largest player in the Irish market, behind Vodafone which has a 39.4 per cent share and ahead of Meteor’s 19.7 per cent, according to the latest quarterly data from the Irish regulator. Virtual operator Tesco Mobile trails in fourth place with 3.4 per cent.

A spokeswoman for Three said O2 customers will only be able to leave their contract without penalty following the approval of the acquisition, if the terms and conditions of their contract change.

She said three mobile operators on the market would be better for customers than four, as the company could put more money into the network now that it was a bigger force.

She added that it would be “business as usual” for both Three and O2 customers until the deal was rubber-stamped by the Competition Authority.

The takeover has also given rise to question over the sponsorship deals O2 has signed. It is the main sponsor of the Irish rugby team and sponsored the West Stand at the Aviva stadium. It is also the title sponsor of the Point Depot which it had renamed The O2.

The sponsorship deal between 02 and the IRFU is in place until 2016 while it signed a 10- year deal with Live Nation and businessman Harry Crosbie to sponsor and rename the Point in 2008.

“All the sponsorship deals and contracts in place will be entertained and continued. When they come up for renewal they will then be reviewed,” a spokeswoman for Three said.

She said it was too early to discuss any finer details of the sponsorship, such as the continued appearance of the O2 name on key sponsorship deals, as the deal was still subject to approval from the Competition Authority, which could take anywhere between six and nine months.

The EU’s antitrust watchdog has been concerned in the past when mobile markets go from four to three players because consumer prices could rise.