Not very likely, according to O2's CEO:
"O2's chief executive Ronan Dunne has said a merger with Three was the "least likely outcome" of a major consolidation. He pointed to O2's mast sharing deal with Vodafone as a major obstacle."
A stock market flotation for O2 is possibly more likely.
Not very likely, according to O2's CEO:
"O2's chief executive Ronan Dunne has said a merger with Three was the "least likely outcome" of a major consolidation. He pointed to O2's mast sharing deal with Vodafone as a major obstacle."
A stock market flotation for O2 is possibly more likely.
We're not talking about a merger, we're talking about Hutchison Whampoa taking on Three UK, like it has taken on O2 Ireland through a purchase. A merger would never happen, but talks are happening at the moment with regard to the sale of O2 by Telefonica.
I don't see how this is the case. Yes, Openreach has a near monopoly on wired broadband, but EE is by far not a monopoly on mobile telephony?
It would be interesting if Openreach had to be divested as part of any deal.
I can't see that happening. Certainly the EU won't step in because in Germany Deutsche Telekom have an equally dominant position to the enlarged BT Group.
We're not talking about a merger, we're talking about Hutchison Whampoa taking on Three UK, like it has taken on O2 Ireland through a purchase. A merger would never happen, but talks are happening at the moment with regard to the sale of O2 by Telefonica.
The word 'merger' is often used in a takeover, even if one company is acquiring the other. Look at the following page on three.ie regarding their takeover of O2 - the page title is "Three-O2 Merger". http://www.three.ie/three-o2-merger/
I can't see that happening. Certainly the EU won't step in because in Germany Deutsche Telekom have an equally dominant position to the enlarged BT Group.
DTAG isn't trying to buy a network, though - their position could be grandfathered in
There will likely be questions on the masses of state subsidies Openreach is getting for their rollout of dead-end FTTC technology (claiming FTTP is too expensive) while BT seems to have the cash for sports rights and mobile networks
It is usually very bad news for consumers anytime the market shrinks.
With their monopoly on landline supply(for broadband) buying mobile dominance can only be bad news.
BT are only dominant because they already get to milk the broadband market.
Bringing the same to mobile cements that monopoly even further.
If anything comes of it (which seems likely, contrary to what a colleague has told me). The competition concerns would be around spectrum and broadband, I should expect spectrum would be divested and put up for auction, as for the broadband, its technically BT managed and owned. However that side of the business will either be spun off or sold, I don't think regulators would allow BT retail to gain a bigger foothold in the landline and broadband market. Vodafone may even buy them? Though given the way EE has packaged itss landline and broadband to tie in with Mobile it will take about 18 months to uncouple all of that.
If this pans out we are about to see two great bigt massive ugly behemoths fight (BT and Vodafone) it out in the UK. The likes of which we haven't seen in many a year. Its rather ironic in that Vodafone wants back into the landline market it ditched a few years back and likewise BT wants back into mobile it ditched about a decade ago. Both companies own an extensive fibre network, both have LLU/Wholesale based equipment in the main exchanges throughout the country. Virgin and Sky are going to be in a panic now, I wonder if anything will come of the partnership between Sky and Vodafone (beyond the trials for OTT service like youview)?
My concern this will leave O2 and Three looking somewhat lacking and to some extent irrelevant. Neither are cash rich directly, O2 is probably thinking selling off its broadband division was a mistake. Three is stuck between a rock and a hard place (going through necessary but painful restructuring), which suggests an aquisition or disposal is on the cards? BT and Vodafone have set themselves up for a battle which will leave incumbent providers like Virgin and Sky out in the cold, neither can compete with them. Vodafone and BT have a balance sheet and asset value that eclipses them combined. I find it rather ironic that the two guerillas in the market are about to be dwarfed two major multinationals in every way.
I really do think these next 12 months are going to work in favour of the consumer rather than against it!
If this means that BT get to use EE's technology to provide rural broadband to notspots then I'm all for it. I think some movement from Three to buy O2 is now inevitable.
If this means that BT get to use EE's technology to provide rural broadband to notspots then I'm all for it. I think some movement from Three to buy O2 is now inevitable.
As long as it gets used responsibly and isn't used as an excuse to not roll out FTTC/P to areas where it would be viable and much more futureproof
If this means that BT get to use EE's technology to provide rural broadband to notspots then I'm all for it. I think some movement from Three to buy O2 is now inevitable.
I didn't even think of it from that perspective, BT had been working in partnership with EE on trials relating to this. I suppose it would be a good and cost effective way to combat broadband slow spots.
What, if any, is the technical advantage for BT pursuing EE over 02 or other mobile network?
EE has a much more robust and technologically modern network - excellent 2G/3G coverage and currently leading in 4G coverage, and trialling things like LTE Advanced.
O2 meanwhile decided to invest the bare minimum and this has resulted in a network with pretty bad 3G coverage and questionable reliability, and BT would have to spend a lot of time and money to bring it up to scratch, whereas EE is ready to go
EE also holds more 4G spectrum than O2, IIRC, so EE is capable of more
EE has a much more robust and technologically modern network - excellent 2G/3G coverage and currently leading in 4G coverage, and trialling things like LTE Advanced.
O2 meanwhile decided to invest the bare minimum and this has resulted in a network with pretty bad 3G coverage and questionable reliability, and BT would have to spend a lot of time and money to bring it up to scratch, whereas EE is ready to go
EE also holds more 4G spectrum than O2, IIRC, so EE is capable of more
Thanks for that precise overview.
EE being made up of T-mob, orange, huchison etc, will this not cause regulatory issues?
EE has a much more robust and technologically modern network - excellent 2G/3G coverage and currently leading in 4G coverage, and trialling things like LTE Advanced.
O2 meanwhile decided to invest the bare minimum and this has resulted in a network with pretty bad 3G coverage and questionable reliability, and BT would have to spend a lot of time and money to bring it up to scratch, whereas EE is ready to go
EE also holds more 4G spectrum than O2, IIRC, so EE is capable of more
Couldn't have put that any better myself.
EE is a much better network, and therefore a better investment.
In my area, O2 is by far the worst network in terms of 3G coverage and data speeds; conducting several speed tests in areas close to me have revealed a download speed of around 50-55Mbps via EE's LTE network. Conducting a speed test using an O2 SIM in the same area often reveals speeds of less than 1Mbps on 3G.
O2 is a pathetic network that is heavily reliant on its existing customer loyalty and exclusive perks such as Priority. The sad thing is that the vast majority of O2 customers either don't know that there are better networks out there, or they are none the wiser and assume that all networks are the same.
I'm surprised SKY haven't gone for O2 as they already have O2s broadband.
Sky is known to be developing MNVO plans of its own, bar the debt from the "Sky Europe" acquisitions, it is fairly stable financially. So they certainly could afford it, and there would be little in way of regulatory hurdles to jump seeing as it would technically be a new entrant to the mobile sector. the only true quadplay provider right now is Virgin Media, however if BT does by EE, then I suspect we will end up with 3 behemoths offering such services in the next 12 months.
Its rather funny in that Sky is facing massive competition in areas it has traditionally been dominant. Film and Sports rights (the form is still under investigation by OFCOM, whether the exclusivity damages competition), BT and Vodafone have more than enough financial clout to take on Sky and render them feckless.
If Vodafone does acquire Liberty Global, then we can expect Sky to circle the corpses of the other operators in lieu of partnership or merger. Where BT and Vodafone go Sky will surely follow, I can't seem them being left out in the cold by choice.
.....Virgin and Sky are going to be in a panic now......
I really do think these next 12 months are going to work in favour of the consumer rather than against it!
Yes, the next 12 months could look good, until the real plans kick in. Its worse for Virgin, BT being able to battle Sky's triple pay stuff.
Sky only works out good value when you buy near everything.
Those not wanting sport get ripped off the most. The biggest beneficiaries could be premiership players getting paid another million or two each per year.
A coming bidding war may well fit well into these plans.
Thats good, the O2 network is in dire need of an upgrade so they probably would have spent as much as they bought it for to bring it up to spec. I will be going to EE when my contract as they seem to be the only network who are up to date with 4G and such like.
EE being made up of T-mob, orange, huchison etc, will this not cause regulatory issues?
BT doesn't really own much of a mobile operation of its own so I can't see why that would be a problem, it's just the network changing ownership rather than a merger like T-Orange was
But there might be concerns about BT owning EE and Openreach (who owns the wired infrastructure) and may be forced to get rid of it for the deal to go through - there's a slight conflict of interest (BT may try to use 4G as an alternative to upgrading the wired network, which is what they have to do currently) and I'm sure the likes Vodafone won't be too happy
Yes, the next 12 months could look good, until the real plans kick in. Its worse for Virgin, BT being able to battle Sky's triple pay stuff.
Sky only works out good value when you buy near everything.
Those not wanting sport get ripped off the most. The biggest beneficiaries could be premiership players getting paid another million or two each per year.
A coming bidding war may well fit well into these plans.
A bidding war is likely I have to agree, I think we are going to see some more regulation in paytv for movies. In essence as it stands now Sky has the exclusive right to pretty much all films released upto 12 months after they have finished showing at the cinema. Competition has increased around sports rights and it is expected OFCOM will also intervene in the film sector to increase competition more effectively. I never understand how they can get away with it though, in the rest of the EU you can buy Film packages from various providers priced more keenly. The only option here is Sky Movies which is at a premium whether direct from Sky or another TV operator.
Comments
Not very likely, according to O2's CEO:
"O2's chief executive Ronan Dunne has said a merger with Three was the "least likely outcome" of a major consolidation. He pointed to O2's mast sharing deal with Vodafone as a major obstacle."
A stock market flotation for O2 is possibly more likely.
We're not talking about a merger, we're talking about Hutchison Whampoa taking on Three UK, like it has taken on O2 Ireland through a purchase. A merger would never happen, but talks are happening at the moment with regard to the sale of O2 by Telefonica.
I can't see that happening. Certainly the EU won't step in because in Germany Deutsche Telekom have an equally dominant position to the enlarged BT Group.
The word 'merger' is often used in a takeover, even if one company is acquiring the other. Look at the following page on three.ie regarding their takeover of O2 - the page title is "Three-O2 Merger".
http://www.three.ie/three-o2-merger/
Do you get a free phone and unlimited data with this deal?
It will be known as BEE TEE
(Phone home!)
DTAG isn't trying to buy a network, though - their position could be grandfathered in
There will likely be questions on the masses of state subsidies Openreach is getting for their rollout of dead-end FTTC technology (claiming FTTP is too expensive) while BT seems to have the cash for sports rights and mobile networks
If anything comes of it (which seems likely, contrary to what a colleague has told me). The competition concerns would be around spectrum and broadband, I should expect spectrum would be divested and put up for auction, as for the broadband, its technically BT managed and owned. However that side of the business will either be spun off or sold, I don't think regulators would allow BT retail to gain a bigger foothold in the landline and broadband market. Vodafone may even buy them? Though given the way EE has packaged itss landline and broadband to tie in with Mobile it will take about 18 months to uncouple all of that.
If this pans out we are about to see two great bigt massive ugly behemoths fight (BT and Vodafone) it out in the UK. The likes of which we haven't seen in many a year. Its rather ironic in that Vodafone wants back into the landline market it ditched a few years back and likewise BT wants back into mobile it ditched about a decade ago. Both companies own an extensive fibre network, both have LLU/Wholesale based equipment in the main exchanges throughout the country. Virgin and Sky are going to be in a panic now, I wonder if anything will come of the partnership between Sky and Vodafone (beyond the trials for OTT service like youview)?
My concern this will leave O2 and Three looking somewhat lacking and to some extent irrelevant. Neither are cash rich directly, O2 is probably thinking selling off its broadband division was a mistake. Three is stuck between a rock and a hard place (going through necessary but painful restructuring), which suggests an aquisition or disposal is on the cards? BT and Vodafone have set themselves up for a battle which will leave incumbent providers like Virgin and Sky out in the cold, neither can compete with them. Vodafone and BT have a balance sheet and asset value that eclipses them combined. I find it rather ironic that the two guerillas in the market are about to be dwarfed two major multinationals in every way.
I really do think these next 12 months are going to work in favour of the consumer rather than against it!
As long as it gets used responsibly and isn't used as an excuse to not roll out FTTC/P to areas where it would be viable and much more futureproof
I didn't even think of it from that perspective, BT had been working in partnership with EE on trials relating to this. I suppose it would be a good and cost effective way to combat broadband slow spots.
EE has a much more robust and technologically modern network - excellent 2G/3G coverage and currently leading in 4G coverage, and trialling things like LTE Advanced.
O2 meanwhile decided to invest the bare minimum and this has resulted in a network with pretty bad 3G coverage and questionable reliability, and BT would have to spend a lot of time and money to bring it up to scratch, whereas EE is ready to go
EE also holds more 4G spectrum than O2, IIRC, so EE is capable of more
I'm surprised SKY haven't gone for O2 as they already have O2s broadband.
That would set the cat amongst the pigeons
Thanks for that precise overview.
EE being made up of T-mob, orange, huchison etc, will this not cause regulatory issues?
EE is a much better network, and therefore a better investment.
In my area, O2 is by far the worst network in terms of 3G coverage and data speeds; conducting several speed tests in areas close to me have revealed a download speed of around 50-55Mbps via EE's LTE network. Conducting a speed test using an O2 SIM in the same area often reveals speeds of less than 1Mbps on 3G.
O2 is a pathetic network that is heavily reliant on its existing customer loyalty and exclusive perks such as Priority. The sad thing is that the vast majority of O2 customers either don't know that there are better networks out there, or they are none the wiser and assume that all networks are the same.
Sky is known to be developing MNVO plans of its own, bar the debt from the "Sky Europe" acquisitions, it is fairly stable financially. So they certainly could afford it, and there would be little in way of regulatory hurdles to jump seeing as it would technically be a new entrant to the mobile sector. the only true quadplay provider right now is Virgin Media, however if BT does by EE, then I suspect we will end up with 3 behemoths offering such services in the next 12 months.
Its rather funny in that Sky is facing massive competition in areas it has traditionally been dominant. Film and Sports rights (the form is still under investigation by OFCOM, whether the exclusivity damages competition), BT and Vodafone have more than enough financial clout to take on Sky and render them feckless.
If Vodafone does acquire Liberty Global, then we can expect Sky to circle the corpses of the other operators in lieu of partnership or merger. Where BT and Vodafone go Sky will surely follow, I can't seem them being left out in the cold by choice.
Don't put it past them, trademark that idea now.
Sky only works out good value when you buy near everything.
Those not wanting sport get ripped off the most. The biggest beneficiaries could be premiership players getting paid another million or two each per year.
A coming bidding war may well fit well into these plans.
BT doesn't really own much of a mobile operation of its own so I can't see why that would be a problem, it's just the network changing ownership rather than a merger like T-Orange was
But there might be concerns about BT owning EE and Openreach (who owns the wired infrastructure) and may be forced to get rid of it for the deal to go through - there's a slight conflict of interest (BT may try to use 4G as an alternative to upgrading the wired network, which is what they have to do currently) and I'm sure the likes Vodafone won't be too happy
A bidding war is likely I have to agree, I think we are going to see some more regulation in paytv for movies. In essence as it stands now Sky has the exclusive right to pretty much all films released upto 12 months after they have finished showing at the cinema. Competition has increased around sports rights and it is expected OFCOM will also intervene in the film sector to increase competition more effectively. I never understand how they can get away with it though, in the rest of the EU you can buy Film packages from various providers priced more keenly. The only option here is Sky Movies which is at a premium whether direct from Sky or another TV operator.