DUBLIN, Ireland-Recent financial moves by Meteor have increased speculation that the operator of Ireland’s third GSM license is clearing the decks for an acquisition attempt by Hutchison, which recently secured the country’s prime third-generation (3G) license following a lengthy competition process.
A report filed by Western Wireless, the U.S.-based parent company of the Irish operator, showed that a loan drawn down to “provide funding for the development and operation” of its network has been cleared, reducing the total amount owed to about US$11.5 million.
There are some obvious strategic benefits to any acquisition deal. Hutchison has just secured the prime Irish 3G license thanks in part to its commitment to increasing competition, delivering high-quality service and accommodating virtual network operators-similar qualities to those Meteor has used in its own marketing efforts.
Meteor did not submit a 3G license bid, but the company refused to rule out entering the market at some point. Under the terms of its license, Hutchison will have to provide 80-percent population coverage, and because Meteor has been developing its coverage steadily, sharing infrastructure is another obvious synergy.
Acquiring Meteor would also provide Hutchison with local expertise and a ready-made customer base, albeit only 3 percent of the Irish mobile market.
