3 Group Europe / CK Hutchison

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"3" (or Three) is the brandname for the international mobile phone service controlled by the Hong Kong-based conglomerate CK Hutchison Holdings (known until 2015 as Hutchison Whampoa). The group also has extensive global interests in energy, shipping and retail. In the latter sector, the group owns health & beauty retailer Watsons, also trading as Kruidvat, Superdrug and other brands in Europe, Hong Kong supermarket ParkNShop and electronics chain Fortress. Previously, Hutchison had created the Orange mobile brand in the UK in 1999, but sold that business in 1999. Three was launched four years later. The brand now operates mainly in Europe, with a presence in six local markets. Each local unit operates more or less independently. Despite the group's best efforts, Three has until recently remained a niche brand, trailing some distance behind the local market leader in each country in which it operates, making it something of an expensive pet project for Hutchison's owner, billionaire Li Ka-shing. His deep pockets have allowed the group to build its presence through selective acquisitions such as Orange Austria in 2012 and O2 Ireland in 2013. However, a transformational deal agreed in 2015 to acquire larger UK rival O2 for over £10bn was subsequently blocked by regulators. Instead, Three UK agreed to acquire local wireless broadband operator Relish/UK Broadband for £300m in early 2017. In 2016, 3 Italia was merged with competitor Wind to form Wind Tre, a joint venture with VimpelCom, and now local market leader with 31.3m mostly prepaid users and over 37% share (ahead of national champion TIM). The UK was the next biggest market with 9.2m users at the end of 2016. The 3 brand is also present in several Asian markets, which are managed separately. The local service in Australia was folded into a joint venture with Vodafone in 2011. Combined revenues for 3 Europe in 2016 were around E7.4bn, and the business had almost 46m users by the end of the year. Canning Fok is chairman of Hutchison Telecoms. Adbrands does not currently offer a business profile for this company but subscribers may access account assignments and contact information. The searchable account assignments database is available to full subscribers to Adbrands.net premium services. Click here to access Adbrands account assignments (subscribers only); or see here for information on how to subscribe.

Which agencies handle advertising for Hutchison 3? Find out more from the Account Assignments database.

Who are the competitors of Hutchison 3? See Telecoms Index for other companies

Capsule checked 27th March 2017

Recent stories from Adbrands Weekly Update:

Adbrands Weekly Update 12th May 2016: As expected, EU regulators upheld the objections of their UK-based counterparts and blocked the proposed merger of mobile networks O2 and Hutchison Three. "Allowing Hutchison to take over O2 at the terms they proposed would have been bad for UK consumers and bad for the UK mobile sector. The remedies offered by Hutchison were not sufficient to prevent this." It is the latest development in the ongoing tug of war between state regulators and European mobile operators over consolidation. This ban now opens the way for alternative deals. Liberty Global, owner of Virgin Media in the UK as well as other European cable services, was quick to express its interest in O2. Any potential deal there would preserve the status quo of four major suppliers which regulators are so keen to preserve. Meanwhile, Three's owner Hutchison was said to be considering an approach to broadband service Talk Talk.

Adbrands Weekly Update 14th Apr 2016: British regulators put pressure on their EU counterparts to veto the proposed merger of O2 and Hutchison 3 in the UK. The UK Competition & Markets Authority (CMA) says the proposed concessions offered by Hutchison fall short of requirements, echoing earlier concerns voiced by telecoms watchdog Ofcom. The CMA opposes any consolidation that would reduce the number of mobile operators from four at present to three. Given the current sensitivity regarding "Brexit", the EU is unlikely to override British regulatory concerns. However, while regulators are opposed to the merger, industry insiders are broadly in favour. A common view is that failure to consolidate would be even worse, not better, for competition, since it will leave O2 and 3 as "lame duck" operators. According to market watcher Enders Analysis, "The economics of the industry are such that four operators isn't viable in the long term... If the 3-O2 deal doesn't go ahead, you'll have two weak players getting weaker and weaker over time." At the end of 2015, EE was the UK's leading operator with almost 32% share. O2 - which owner Telefonica wants to sell - had almost 30%, with Vodafone on 24% and 3 at 14%.

Adbrands Weekly Update 7th April 2016: The proposed acquisition of O2 UK by 3 mobile owner Hutchison is on the ropes. The Hong Kong group has firmed up a number of concessions to appease EU regulators, including the transfer of a significant chunk of O2's call capacity to pay TV operators Sky and Virgin Media, as well as its 50% stake in Tesco Mobile. However that may not be enough to satisfy competition watchdogs. A decision is expected this week.

Adbrands Weekly Update 11th Jun 2015: Ads of the Week: "When Stuff Sucks". Advertising for mobile network Three UK has tended to be pretty hit and miss in the past, with every strong campaign (the dancing pony for example) counterbalanced by two or three duds. This latest Muppetised campaign from Wieden & Kennedy London is undoubted the best for years (since the pony in fact), showing a lot more swagger in its stride. Perhaps it's not surprising since this one-time also-ran mobile network will soon be the UK #1, once its takeover of O2 goes through. 

Adbrands Weekly Update 14th May 2015: Even as it moves closer to its takeover of O2 in the UK, Hutchison Whampoa, owner of the Three network, is also in negotiations to join forces with its Italian rival Wind. The combination of Three and Wind would create a much stronger rival to local leaders Telecom Italia and Vodafone. The trio would each have around a third of the market. Wind is controlled by Russian group VimpelCom. Under the proposed arrangement, a merged company would be a straight joint venture between VimpelCom and Hutchison.

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