Vultures still circling on 3 UK

YET MORE speculation that the UK arm of Hutchison's 3 network is up for sale in the Mail on Sunday. This time a financier and China Mobile get a mention.

The newspaper reckons that corporate financier, Simon Holden of Goldman Sachs, has been touting the business for around £6 billion to the usual suspects - T-Mobile and O2 (an INQ previous hot tip).

Now we've got China Mobile - the world's largest mobile network operator in terms of customers - in the frame too, apparently.

But hang on - shouldn't Holden be throwing his net wider? If you're thinking of buying a 3G network in the shape of 3, you don't need to know how to operate a network. Ericsson is doing that for 3 under contract.

So perhaps Holden should be looking at the big media companies - a Sony or BMG - because what 3 UK does very well is sell pop music video downloads.

3 UK itself is still busily trying to deny the rumours. Over in the Sunday Times, group CFO, Frank Sixt, is quoted as saying, "We're not keen to sell 3. After we've missed a target, we don't put the ‘for sale' sign up."

Sixt told the publication that, "UK management had initially blamed the large number of deserting customers on poor-quality handsets early customers received."

Considering Italy and Australia are doing well for 3, this is a bit of a lame excuse. Sixt reckons it's poor distribution so he wants to see 3 UK build up its store chain.

The INQ never thought selling 3 handsets from the group's Superdrug outlets was the most logical of moves.

Of course, one of the reason's why 3 Australia does better is that it embraces content completely. And that includes adult content. µ

L'INQ
3 UK

See Also
Virgin Mobile & 3 to disappear
3 rumoured up for sale - again