Kevin Russell, 3UK CEO on Ofcom decision: "Absurd, anti-competitive'

FT.com / Companies / Telecoms – Hutchison’s 3 challenges UK regulator

Hutchison Whampoa’s mobile operator, 3, is challenging plans by UK regulators to force it to charge substantially less for connecting phone calls to its network because of concerns that the changes threaten its path to profitability.

Last week 3 lodged an appeal with the Competition Appeal Tribunal against a decision by Ofcom, the telecommunications watchdog, that would require the UK’s fifth largest mobile operator to cut its charges by 45 per cent.

Kevin Russell, chief executive of 3 UK, accused Ofcom of making an ‘absurd” and anti-competitive decision that he said would result in it subsidising Britain’s established big four mobile operators: O2, Vodafone, Orange and T-Mobile.

Kevin and Co at Three — or ‘3’ (I prefer writing ‘Three’) are not happy, particularly on the basis that they’re subsidising the other networks to the tune of £50m each year. This is a little bit ridiculous, isn’t it?

I can see arguments for both the Ofcom and the Three perspective, but really… it’s not very anti-competitive, making one network pony up a ton of charges to it’s competitors.

Then again, kitchen, heat and so on.