Three has been given the formal go-ahead by the European Commission to take over the O2 brand and network within Ireland.
This means that for the first time the main sponsor of Ireland’s national rugby and soccer teams will be under the same brand, as well as the countries premier music venue, currently known as the O2.
The first two deals are in place until 2016 with renewal of the third due in 2018. It is expected that the transition of branding of the sponsorships will take place over the coming months with the Three brand almost certain to be on the new Irish rugby jersey to be produced by Canterbury and launched ahead of the Guinness Series of Internationals in the autumn.
Investment
Three revealed over the course of the negotiation that parent company Hutchison Whampoa had invested €1.1 Billion in the business to date and that additional support of over €300 million was expected over the next three years.
The new merged operator will have over 2 million customers and a 37% market share. Combined revenue in 2013 for the two companies was €736 million, 80% of which was through the O2 brand.
As part of the deal Three will need to enable competition and is likely to push ahead with a deal to allow UPC provide a mobile service over its network. It will also have to allow Meteor, part opt the Eircom family, increased access to the combined infrastructure.
Rich Content
With 4G roll out already under way and heavily promoted, the mobile brands will be looking for rich content to reverse a decline in revenue per user numbers.
The mix of soccer, rugby and music content which the newly merged sponsorship portfolio will give access to is likely to feature prominently in that given worldwide trends in sponsorship and digital media.
Three is also on the jersey of the Waterford GAA teams, was a main partner of the Dublin New Years Eve Festival and backs The Last Word on Today FM.
It will of course be a nervous period for two of the three biggest sporting bodies in the country but the different demographics and behaviours of the dedicated fans of both sport and the arts means that there are great opportunities for the new business and its unique position at the heart of the Irish sponsorship market.
Read the six questions we posed when the deal was first mooted last year.
