The deal is expected to be completed by the middle of the year subject to approval
Three has entered the UK broadband market after acquiring 4G internet provider UK Broadband in a deal worth £250 million.
The acquisition, which is still subject to approval, was announced today (February 6). It is expected to be completed fully by the middle of the year and will add 15,000 customers to Three’s current base of 9.2 million. £50 million of the £250 million will be used as credit towards an MVNO agreement with Three.
This deal will allow Three to compete more heavily with the likes of Vodafone and EE, who already offer their own broadband products. UK Broadband runs its services across its own 4G network. It had acquired 124MHz of spectrum in the 2013 auction. The company also runs the Relish broadband network.
Three UK chief executive Dave Dyson said: “UK Broadband gives us an opportunity to expand our ambition to provide high quality and great value internet connectivity for UK consumers.”
UK Broadband is a wholly owned subsidiary of quad-play provider PCCW Limited who, like Three-parent CK Hutchison, is based in Hong Kong. The group employs more than 18,700 employees across the globe.
The acquisition comes after CK Hutchison’s failed attempt at a £10.5 billion merger with O2. It was blocked by the European Commission over fears it would have a negative impact on competition throughout the UK.