H3G Group’s H1 2008 results showed static revenue and EBITDA slipping back into negative territory, neither of which bode well for the company’s target of being EBIT positive next year

H3G Group’s growth continued to slow in H2 2007, and it is now growing at just 6%, versus 10% 6 months ago, with falling ARPU combining with static subscriber net additions

O2 this week announced changes to its contract tariffs; however, these will have limited impact for most of their subscribers, and the reductions to their data pricing only bring them into line with changes the other operators have already made

Unity Media sold its 14.58% stake in German pay-TV operator Premiere to News Corporation at the start of 2008, prompting speculation of a full takeover by News Corporation later in the year

H3G has made great strides this year, but these have mainly been in terms of reported subscribers and market perception rather than in fundamental terms. In this report we examine in depth both its global business model and the all-important funding available in order to assess the likely future for the business, and its subsequent impact on the GSM operators.