Hutchison defies Vestager and increases prices, ahead of its planned acquisition of o2 in the UK, for the fourth time
- This is the fourth time that Three UK increases prices by double digit percentage ahead of its planned acquisition of o2
- Hutchison appears to be confident that price increases will not deter the European Commission from approving the 4 to 3 merger
- Is Hutchison ready to accept truly effective structural remedies or does it still believe that Commissioner Vestager will approve the merger with Mickey Mouse (ineffective) MVNO wholesale access remedies?
- Is the UK mobile market conducive to effective competition and will the planned 4 to 3 merger turn it to a non-competitive tight oligopoly?
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The state of 4G pricing, mobile data usage, spectrum usage, network capacity utilization and fixed-to-mobile broadband substitution. After its comeback in 2016, in 2017 unlimited mobile data goes viral and spreads to 22 countries. And while in competitive markets such as France and Denmark consumers can buy 100 or unlimited gigabytes for less than 30, in tight mobile oligopoly markets such as Portugal, Greece and Hungary 30 hardly buys any gigabytes. Europes mobile data divide widens further: 200x more gigabytes for 30 in smartphone plans, 600x more gigabytes in mobile broadband plans, 200x difference in median gigabyte prices, 40x difference in mobile data usage per capita and spectrum usage.
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