Virgin may enter UK 3G market

date: May 22, 2002

Rumours that the forthcoming UK's Communications Bill will include a clause allowing operators to conduct spectrum trading has resulted in the speculation that Hutchison Whampoa will put in a take-over bid for mmO2. The next instalment in the UK market saga is that Virgin Mobile, which dropped out of the staggering GB£22.5bn (EUR36.1bn) auction held in April 2000 during the early rounds, may now be sniffing about to acquire an excess 3G spectrum.

The MVNO, which has more than 1.6 million subscribers, failed to secure any of its own spectrum in the 3G auction and is now watching closely any possible deal between Hutchison and mmO2, as this would give it a break into the market. Virgin Mobile is currently using capacity from T-mobile UK.

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