Mobile operator to assist rivals

Hutchison Whampoa has offered to give network access to several virtual network operators in a bid to win EU approval to buy Telefonica’s Irish unit, according to sources.

Hutchison promised to let several mobile virtual network operators to piggyback on its network to commence rival services, said the sources. Concessions by billionaire Li Ka-Shing’s Hutchison are designed to overcome EU objections to the combination of two of Ireland’s four mobile operators.

Telefonica’s separate plan to merge its German unit with Royal KPN’s E-Plus is another tie-up that is testing how far regulators are willing to allow consolidation in the industry.

Joaquin Almunia, the EU’s antitrust chief, has said such deals can’t come at the expense of higher prices for consumers.

Hutchison is in talks with Liberty Global Plc’s UPC on providing network access, said the source. Hutchison will also pledge to expand a network-share agreement with Eircom Group that allows both companies to share buildings that host mobile masts and broadcasting equipment.

The company also offered to give fourth- generation mobile spectrum in Ireland to Eircom, a source said. Hutchison’s Three Ireland “was ready to offer strong remedies to allay the concerns expressed by the commission,” said Joanna Kavanagh, a spokeswoman for the company in Dublin.

European Commission spokesman Antoine Colombani said Hutchison filed commitments with the EU yesterday and the deadline to rule on the deal was extended until May 19.

Regulators will ask rivals and customers to comment on Hutchison’s offer next week, the sources said. Based on that feedback, the EU can seek additional concessions or accept the company’s pledge to approve the deal.

UPC Ireland a spokes- woman Anna-Maria Barry declined to comment on talks with Hutchison.

- Bloomberg