CK Hutchison offers spectrum share to Sky & Virgin to help land O2 deal
If European regulators in Brussels approve CK Hutchison's £10.25 billion takeover of O2, Hutchison have agreed to share up to a third of its UK spectrum worth up to £3 billion.
Virgin Media have signed an agreement for 10 per cent of the spectrum, with Sky agreeing to taking another 20 per cent.
Hutchison, the owner of mobile network operator Three have claimed that their strategy to merge Three and O2 will be their only chance of competing against their bigger rivals BT and Vodafone.
The UK's telecoms regulator Ofcom has stated that the networks planned mergers need to retain an element of competition between the four mobile network operators; Three, O2, Vodafone and EE. However customers need to be protected against potential price rises.
European officals have until May 15th to decide whether to allow the O2 takeover or not which is allowed would create the UK's biggest mobile network.
Sky are looking set to launch their own MVNO later on this year and have signed a 10-year deal should the approval be given, Hutchison have also agreed that they will sell a 50 per cent stake in the Tesco Mobile MVNO which is currently owned by O2 back to the supermarket.
Announced back in 2015, the proposed takeover has faced opposition from Ofcom which has cast doubts over whether the planned merger will go ahead.