News
While brand names have altered over 30 years and handsets have evolved, the big players driving the U.K. mobile market have largely stayed the course.
It’s just over 30 years since the launch of the first mainstream analogue mobile services in the U.K., and a lot has changed in that time.
Devices have altered beyond recognition, services are evolving at a phenomenal rate, and some brands have long been consigned to the annals of history.
But interestingly, many of the big names that were around at the dawn of the mobile era in the U.K. are still in the mix. Vodafone has been in it for the duration, making only minor changes to its corporate brand over the past three decades; Hong Kong’s Hutchison has been there or thereabouts since the start of digital mobile services; and European incumbents Deutsche Telekom and France Telecom have had a presence in the market for more than 15 years.
And, with the closing of the EE deal on Friday, BT can once again count itself among industry veterans…if you overlook its 15-year absence.
Here’s a potted history of the last 30 years of mobile in the U.K.
1985
The U.K. gets its first analogue cellular networks. Racal Vodafone launches first under the Vodafone brand, followed by Cellnet, a 60:40 joint venture between BT and Securicor.
1988
Cellnet and Racal-Vodafone together pass 500,000 subscribers milestone. Network coverage reaches 90% of the U.K. population.
1991
Mobile licences awarded to Mercury Personal Communications Network (PCN), Microtel Communications and Unitel Personal Communications as government seeks to break duopoly. The following year Mercury PCN and Unitel merge to become Mercury Personal Communications.
Racal and Vodafone demerge, and the Vodafone Group is listed as an independent company.
1993
Cable & Wireless-owned Mercury launches GSM services as Mercury One 2 One.
1994
Orange – formerly known as Microtel and by now majority-owned by Hutchison Whampoa – launches digital PCN services. Cellnet and Vodafone also launch GSM offerings.
1999
Vodafone Group merges with AirTouch Communications to create Vodafone AirTouch
BT gets the regulatory go-ahead to buy 100% of Cellnet. It agrees to pay £3.15 billion for Securicor’s 40% stake; the company is renamed BT Cellnet.
Deutsche Telekom announces £8.4 billion acquisition of One 2 One. Drops Mercury brand.
Germany’s Mannesmann agrees to acquire Orange in a cash and stock deal valued at £19.8 billion.
2000
The U.K.’s 3G licence auction raises £22.48 billion. Licences are awarded to One 2 One, Hutchison Whampoa-backed TIW, BT, Vodafone and Orange.
Vodafone AirTouch acquires Germany’s Mannesmann, creating the world’s largest mobile company and forcing the sale of Orange for antitrust reasons. France Telecom acquires Orange. Vodafone reverts to its Vodafone Group brand.
2001
BT demerges its mobile business as mmO2. The mobile operation launches the O2 brand the following year.
2002
One 2 One is rebranded as T-Mobile.
2003
Hutchison Whampoa launches the U.K.’s first 3G service under its 3 brand. The country now has five mobile network operators.
2005
Spain’s Telefonica agrees to buy O2 for £17.7 billion.
2009
Orange and Deutsche Telekom agree to combine their U.K. mobile operations into a 50:50 joint venture.
2010
Orange and T-Mobile UK merge as Everything Everywhere, the market’s biggest operator.
2012
Everything Everywhere adopts EE as its new brand. EE launches the first LTE network in the U.K.
2013
U.K.’s LTE auction raises £2.34 billion for spectrum in the 800-MHz and 2.6-GHz bands. The country’s four mobile network operators – EE, Vodafone, O2 and 3UK – all win spectrum, as does BT, which agrees to pay £186.48 million for 2.6-GHz frequencies. The process subsequently draws a further £27 million as BT and Vodafone agree to pay more in the spectrum assignment stage.
2014
Talk of BT’s return to the consumer mobile market intensifies. Towards the end of the year BT admits it is in talks with former mobile unit O2 and EE about a possible takeover.
BT enters exclusive talks with EE over a £12.5 billion deal; the firms ink the deal in February 2015.
2015
Hutchison Whampoa and Telefonica finalise a £10.25 billion agreement to merge their U.K. businesses, 3UK and O2.
BT returns to the U.K. mobile market with the launch of BT Mobile, an MVNO on EE’s network.
2016
BT completes the £12.5 billion acquisition of EE, marking its return to the world of the mobile network operator. As part of the deal, EE parents Deutsche Telekom and Orange take stakes of 12% and 4% respectively in BT. Deutsche Telekom CEO Tim Hoettges joins BT board.
Sources: Bloomberg, BT, Ofcom, Science Museum, Total Telecom, Vodafone, Wall Street Journal










