Three increases market in Ireland after £725m O2 deal

MOBILE network Three is to take on Vodafone’s dominance in Ireland after agreeing an €850 million (£725m) deal for the operations of rival O2.

The proposed deal with O2’s Spanish owner Telefonica will give Three a market share of around 37.5% and two million users, compared with Vodafone’s estimated 40%.

O2, which sponsors Dublin’s main concert arena and the country’s rugby team, has 28% of the Irish market, employs 850 staff and has almost 70 stores. Telefonica is selling the business to cut debt.

Three owner Hutchison Whampoa said it would now have the scale and strength to “compete even more aggressively”, although consumers will be left with just three main operators, the third being Eircom.

Three said it was too soon to say whether jobs would be cut or when the O2 name would disappear on key sponsorship deals.