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Possible sale of O2 Airwave
During December, Telefónica S.A. announced the appointment of J P Morgan Cazenove to undertake a strategic review of all options for Airwave O2 Ltd, including a total or partial disposal of the company.
During December, Telefónica S.A. announced the appointment of J P Morgan Cazenove to undertake a strategic review of all options for Airwave O2 Ltd, including a total or partial disposal of the company.
Airwave O2 Ltd, a wholly owned subsidiary of Telefónica, manages a public safety radio communications service in Great Britain.
The Airwave system provides true interoperability between the emergency services for the first time, allowing them to communicate seamlessly regardless of location.
The review process, which follows initial consultation with Her Majesty's Government, is likely to take a number of months. During this period, the existing Airwave O2 management team remains fully committed to continuing to provide the highest levels of service to its customers.
Commenting on the press statement, PITO issued its concern to all PITO Airwave Programme Board members, highlighting that when Airwave was sold to Telefonica some twelve months ago that safeguards had been contained in the contract against the sale of Airwave to an unsuitable organisation.
Since this time PITO has consulted the DTI about the provisions of the Enterprise Act 2002 which offer, in its view, stronger safeguards.
However, the proposed sale of O2 after only a year in the ownership of Telefonica raises the different prospect of the national emergency service radio network's being repeatedly sold at short intervals to otherwise acceptable buyers.
This brings a risk to continuity and standards of service and would involve PITO in a continuous succession of due diligence exercises which would divert time and attention from the day to day monitoring of O2.
PITO will therefore be exploring whether there is anything further that can be done specifically to prevent a succession of sales.
As we went to press, we understand (from an unconfirmed source) that PITO has already approached the Fire Service and Ambulance Service to see if they wish to join them in another approach to the DTI, we believe the Fire Service has already confirmed that it does.
