BT says Three-Cellnex mast deal will harm competition

Date:
Fri, 24 Sep 2021 09:28:21 +0000

Description:
BT says deal to sell Three's masts to Cellnex would negatively impact passive infrastructure market.

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BT says Cellnexs proposed acquisition of Threes mobile masts in the UK would negatively impact the market and make it more difficult for other operators
to roll out 5G networks.

Threes parent CK Hutchison has agreed a 10 billion deal to sell its European towers to Spanish-based Cellnex, which leases out access to passive infrastructure such as towers to operators so they can install their active equipment such as antennas to power their services.

As an independent provider, Cellnex can maximise the value of these assets by securing arrangements with multiple providers, while selling operators can raise capital and free themselves of any maintenance burden. These are the best business SIM-only deals around today And the best business broadband deals Here are the best business mobile phone deals Cellnex Three mast sale

Transactions for CK Hutchisons masts have already been approved in Austria, Denmark, Ireland, Italy, Sweden, however the deal has been held up by the Competitions and Markets Authority (CMA) in the UK.

The CMA is concerned that Cellnexs share of the independent infrastructure market would be too great after it purchased Arqivas assets back in 2020. It believes CK Hutchison could have secured an alternative buyer what would have posed fewer issues.

BT agrees with that viewpoint. In a submission to the CMA, it argued that the deal would strengthen Cellnexs position and increase costs for operators, while also increasing the barrier for any new entrant into the market.

The merger will strengthen Cellnexs already strong position in the UK and increase its supplier power to the detriment of its customers, and also to
the detriment of smaller WIP [Wireless Infrastructure Providers] and new entrant providers ability to compete in the UK, said BT. In BTs view, this would inevitably lead to higher prices and lower services levels.

Furthermore, BT is concerned about the potential impact on MBNL the tower sharing joint venture that was originally struck between Three and T-Mobile, with Oranges infrastructure added in September 2010 following the merger that eventually created EE.

BT believes that there is a realistic prospect that the merger will adversely impact BTs ability to utilise the MBNL JV to roll out 5G services to UK customers, it added.

For their part, CK Hutchison and Cellnex argue the merger will actually increase competition. In their submission to the CMA, the two companies said the deal was strongly pro-competitive and reflected a wider trend in the industry for operators to spin off or sell their passive infrastructure to third parties in order to raise revenues for network construction.

Cellnex says the mobile market will benefit from its ability to offer third parties access to the masts and accelerate the rollout of 5G across the UK from all operators. Meanwhile, CK Hutchison says the deal will unlock vital funds for its own 5G rollout Here are the best Three mobile phone deals



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Link to news story: https://www.techradar.com/news/bt-says-three-cellnex-mast-deal-will-harm-compe tition/


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