Can 3 Survive On Its Own?

After the recent news that the Italian arm may be about to be sold off, there is some confusion in the UK market as to the future of the 3 Network, just at a time when the networks public profile is growing.  So what really is going on at 3? Is the whole network for sale, or are Hutchinson Whampoa just selling off the less profitable sides of the business?

Even if the company’s parent company are just selling off the non profitable operations, it does seem a little strange to make so much of the networks coverage around the world, and the start to slowly peel away certain areas.   While the UK market is as competitive as it has ever been, the 3 brand is probably at its highest point of public recognition for some time, thanks to a fairly large promotional spend from Hutchinson.  New handsets on the way, competitive tariffs and a record promotional spend for the company are not the signs of a company up for sale.  But can 3 survive on its own?

The problem for 3 at the moment is that fact that we are seeing the emergence of the next round of 3G licences for sale by the UK government, and while the industry will have learnt from the disastrous auction about a decade ago, licences will be expensive.  Perhaps a partnership with a larger electronics firm, or being integrated into an existing network may be the best way forward, but currently the future is a little clouded.