TUESDAY 25 JUN 2013 1:25 PM

TELECOM BRANDING AFTER IRISH MERGER

Yesterday, Three announced that it would be shelling out €850 million for O2’s operation in Ireland. O2, which has been offloading properties in the effort to staunch the growth of its debt. The move will make Three Ireland the second-largest mobile company in the country.

Steven Hartley, practice leader of technology consultancy Ovum’s industry, communications & broadband practice, says Three’s added market share could pave the way for future expansion. “The most interesting aspect is that Three leaps to 37% market share. Combined with its deal to purchase Orange’s assets in Austria, there is the potential for Three to become a key beneficiary from the ‘shuffling of the decks’ among the major telcos in Europe.”

Three's Ireland CEO says the ambition to connect Irish businesses with high-speed internet is a core aim of the company's economic recovery strategy.

Though the news does imply a significant change to the mobile landscape, a major concern for users and the companies involved will be the impact a merger has on the two brands. In the telecoms space, brands can breed staunchly loyal fans.

O2 supports Ireland’s national rugby team and has other high-profile advertising in Dublin and across the country. Those assets will soon be replaced with Three branding; Three is the existing sponsor of the national football team.

“Mergers are always tricky waters to navigate. Particularly for consumers, it can completely shake their confidence in the brand(s) in question. Mergers are highly sensitive at a business level, but brands must ensure that they do not lose sight of what’s important to long-term success and profitability: customer engagement,” Alan Thorpe, business development director at Indicia, a customer engagement and digital agency, says.

He adds that engagement is dependent upon a consistent and rewarding customer experience. Three and O2 must seek to make the transition period as non-disruptive as possible. The precedent for merging mobile brands had been set by the T-Mobile and Orange transition into the EE umbrella.

“Ultimately, brands need to begin acting more human,” Thorpe says. “If they place themselves in their consumers shoes, then they can find the all-important questions that need answering.”