Sphere No.48 (Jan 2020)

TELECOMS FOCUS Transformation 3’s Connected World The telecommunications business is the modern backbone of the mobile and Internet economy. While cables in the ground move the data, telecom towers have become the last-mile solution to getting data to the people. he world is abuzz with talk of 5G technology and the Internet of Things (IoT). But if the underlying corporate and financial structures aren’t modernised, they can slow the upgrading of technology, leaving opportunities on the table and putting a telecommunications leader at a disadvantage to its competitors. The CK Hutchison Group (CKHH) has moved to modernise, rationalise and energise its global telecom holdings across Europe and Asia. The new holding company’s financial strength and corporate structure will position the Group to capitalise on the 21st century’s most exciting prospects. T Sphere #48 2020 14 3 Europe and 3 Hong Kong: All together now! CKHH has moved to rationalise the telecom assets of the Group, whether wholly or partially owned, in a manner that will enable them to unlock value for future growth. Newly formed CK Hutchison Group Telecom Holdings Limited (CK Hutchison Group Telecom) is 100% owned by CKHH and is a vital part of the global business. Its earnings contributed 31% of Group EBITDA in the first half of 2019 and its assets make up 28% of the Group total. CK Hutchison Group Telecom’s strength is the Group’s strength. Under the old structure, Hutchison Telecom Hong Kong Holdings Limited (HTHKH) held the 3 businesses in Hong Kong and Macau as well as related telecom assets. Likewise, each European company – from the UK to Italy – was a distinct company, whether 100% owned ( 3 UK, Wind Tre, 3 Austria and 3 Ireland) or 60% owned ( 3 Sweden and 3 Denmark). Assets, like cell sites and telecom towers, were held by each national champion. The companies were able to cooperate by, for example, leading Europe in eliminating roaming charges for 3 customers across its six markets. But now cross-border cooperation, fiscal strength and operational efficiency are all being elevated through the new structure that sees the phone companies held in one vehicle: CK Hutchison Group Telecom.