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Lai See

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Why you can trust SCMP
Howard Winn

Li Ka-shing spits dummy over UK auction rules

Li Ka-shing's Hutchison Whampoa, which controls the mobile-telephone operator 3, has spat its dummy over what it believes is unfairness ahead of the GBP5 billion (HK$60 billion) auction of airwaves in Britain next year.

Worried that Vodafone Group and O2 - the mobile-phone companies that dominate the British market - will have an unfair advantage, 3 has threatened to pull out of the market unless the auction rules are changed.

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It has made representations along these lines to Ofcom, the regulator that is drawing up the auction rules, and Ed Vaizey, the communications minister.

3 was launched in 2003 and remains the smallest of Britain's mobile-phone operators.

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The company lost GBP20 million in the first half of last year (on revenue of GBP686 million), which was an 87 per cent improvement on the previous comparable period.

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