In the biggest media pitch of the year so far, MediaVest has picked up the media account for mobile operator Three, following a two-way shootout with the incumbent Mindshare.
MediaVest already had media account for O2 in Ireland, while Mindshare held the account for Three. However, following the acquisition of O2 by Three, which becomes effective at the end of June, the newly enlarged company needed just one agency. The creative account, which was not put out to pitch, remains with Boys and Girls.
“We are delighted to be the preferred supplier to Three and we look forward to the exciting challenges ahead,” says Aidan Greene, managing director of MediaVest.
Last week, Three got the go-ahead for the O2 acquisition from the European Commission. This will see its market share rise to 37% and bring subscriber numbers to over 2m active users. The two companies had combined revenues of €736m in 2013. Prior to the acquisition, Three’s Irish revenues amounted to €180m in 2013.
Hutchinson Whampoa, Three’s parent company, has so far invested over €1.1bn in the Three’s Irish business. This, together with the purchase of O2 Ireland and the planned investment of €300m to build a 4G network over the next three years, will bring its total investment in Ireland to circa €2bn.
As part of the EU approval process, Three has committed to provide network capacity and MVNO services to two MVNOs in order to facilitate new MVNO entry into Ireland with the option to acquire spectrum that may be taken up by one or the other to become a network operator. Three has also committed to offer to Eircom Meteor to continue its network sharing with O2 on improved terms with the merged network.