No Alarm Bells as Spain Sells off UK Emergency Network

As expected Spanish-based telecoms giant Telefonica has sold its UK emergency services mobile data network, known as O2 Airwave, to Australian investment bank Macquarie. The Spaniards were happy to accept €2.98 billion (£2.02 billion) for the network which has some 150,000 users and transmits signals via a system of 30,000 masts covering 99% of the UK.

The deal is due to be completed tomorrow and should net Telefonica €2.86 billion (£1.94 billion) following the deduction of Airwave's debt and other liabilities. Over four months ago, Telefonica announced a strategic review of Airwave, at the time, a number of private equity companies were said to be interested in any possible sell off, with TDF, the former broadcast unit of France Telecom also said to in the running.

The Spanish company claimed that the deal is deal is proof of its commitment to maintain financial discipline and that the time was right to realise the value created in Airwave. This followed the company winning a number of important contract wins, including Airwave's first overseas contract in Norway.

Telefonica O2 Europe's chairman and chief executive Peter Erskine said Macquarie had a strong track record in major infrastructure projects and was committed to continuing the strong growth of Airwave's business.