BT sold O2 to Telefonica in 2004 for £71.7bn so I wonder what sort of money change hands to buy it back?
Well given how much money O2 has invested in its network since 2004, I'd say about £71.7bn.
Thing is, O2 has a strong brand (stronger than EE) but EE would be the network to buy. However, I have no idea what it would cost. Presumably all that investment in infrastructure, spectrum etc would make it a much more costly buy - but you'd be getting a solid network from day one.
And it's quite clear that as time goes on both FT and DT seem increasingly keen to get rid, so that could actually help a buyer get it for a good price.
Would be a lot easier for BT to do a deal with Telefonica for O2 as they would have to come to a deal with both DT and FT for EE as they both have a 50:50 stake...
Wonder how that will pan out? Surely buying EE in this case would be better?
Depends on how much they're willng to pay. Buy O2 and get a network in dire need of upgrading, or pay a premium for EE but save on network upgrade costs in the long term.
Depends on how much they're willng to pay. Buy O2 and get a network in dire need of upgrading, or pay a premium for EE but save on network upgrade costs in the long term.
I'm talking more the legalities of the MVNO deal signed. If BT buy O2 then that cannot go ahead.
Well given how much money O2 has invested in its network since 2004, I'd say about £71.7bn.
Thing is, O2 has a strong brand (stronger than EE) but EE would be the network to buy. However, I have no idea what it would cost. Presumably all that investment in infrastructure, spectrum etc would make it a much more costly buy - but you'd be getting a solid network from day one.
And it's quite clear that as time goes on both FT and DT seem increasingly keen to get rid, so that could actually help a buyer get it for a good price.
EE also has the spectrum deal with BT and seems to be leaning toward wanting to do rural 4G broadband (as they have done in Cheshire and have announced a plan for Cornwall), which might be a good fit for BT's existing rural broadband plans (some of them are currently pushing customers to satellite internet whereas 4G would be several times better)
Reuters is reporting that yet another mobile operator has approached BT for a buyout. The agency cites "a person familiar with the matter" who says that EE, the UK's biggest mobile operator, has held talks with the group.
Well given how much money O2 has invested in its network since 2004, I'd say about £71.7bn.
Thing is, O2 has a strong brand (stronger than EE) but EE would be the network to buy. However, I have no idea what it would cost. Presumably all that investment in infrastructure, spectrum etc would make it a much more costly buy - but you'd be getting a solid network from day one.
And it's quite clear that as time goes on both FT and DT seem increasingly keen to get rid, so that could actually help a buyer get it for a good price.
I reckon one of the reasons BT wanted to get rid of O2 in the first place was the cost of that pricey 3G licence which cost them £4.03bn plus they would have to "Invest in 3G network upgrades" clearly that was a bit of a disaster.
EE at least have a network that is worth buying as they have spent some money on it. BT I suspect culturally more like O2 and their dead slow and stop pace of doing things is more akin to BT. Invest as little as possible and drag it out as long as you can.
EE just lease the space from BTO like most other ISP's. BT don't run the business...
I'm aware of what many ISPs do, but does EE actually have a network of their own?
"In March 2010 Orange announced that they were handing over the management of their network to BT Wholesale and starting to sell a wholesale, or non-LLU, product.
Maybe EE "run the business" but BT appears to be doing the leg work to provide the service?
(just like how BT provided a "white goods" broadband service for the Post Office before they moved to TalkTalk - BT provided the service from end to end, the PO did the billing and customer services and decided what to charge)
Whilst I knew BT was sniffing around for potential aquisitions, I didn't expect it to include EE. I honestly thought it would have been someone like AT&T or another american arm who would have bid for them. The fact that these two companies (Telefonica and EE Parents) have approached BT directly makes it sound like they really want to get rid, if anything this puts BT in a rather delicious position, they can effectively demand the price and what terms they are sat at. Never in a million years did I picture it happens this way.
Of the two the most likely aquisition would be O2, purely because of the spectrum allocation. It is likely BT would have to divest its 2600 spectrum if it was to take over EE. Where as with O2 it would free from those concerns. things are starting to get interesting now....what with vodafone now entering the quadplay segment from early next year and BT potentially getting back into the mobile market, we really are in for a treat.
It was obvious to me after AT&T brought lusacell they they were going to be focusing on Mexico and not a European prescence for a while it is a better economic fit for them specially with them being able to bid for the breaking up of America Movil that has to happen.
Must say I am surprised BT is considering to buy O2 they apparently can't find money to pay FTTP in a lot of areas like was originally said but can somehow find money to buy a mobile operator.
It was obvious to me after AT&T brought lusacell they they were going to be focusing on Mexico and not a European prescence for a while it is a better economic fit for them specially with them being able to bid for the breaking up of America Movil that has to happen.
Must say I am surprised BT is considering to buy O2 they apparently can't find money to pay FTTP in a lot of areas like was originally said but can somehow find money to buy a mobile operator.
BT's FTTP rollout verges on random, yesterday I saw a rural farmhouse that could get FTTP (the telegraph pole that has the fibre on it being basically for their sole exclusive use), and in other places I've seen half of the street have FTTP and half have FTTC
It was obvious to me after AT&T brought lusacell they they were going to be focusing on Mexico and not a European prescence for a while it is a better economic fit for them specially with them being able to bid for the breaking up of America Movil that has to happen.
Must say I am surprised BT is considering to buy O2 they apparently can't find money to pay FTTP in a lot of areas like was originally said but can somehow find money to buy a mobile operator.
BT spunked a shit load of money on Football rights. They will be quite happy to do the same on a Mobile Network. Yeah BT know where their priorities are and its not on Fibre or any sort of broadband infrastructure for consumers >:(
Comments
Well given how much money O2 has invested in its network since 2004, I'd say about £71.7bn.
Thing is, O2 has a strong brand (stronger than EE) but EE would be the network to buy. However, I have no idea what it would cost. Presumably all that investment in infrastructure, spectrum etc would make it a much more costly buy - but you'd be getting a solid network from day one.
And it's quite clear that as time goes on both FT and DT seem increasingly keen to get rid, so that could actually help a buyer get it for a good price.
Looks to be EE according to the releases.
Would be a lot easier for BT to do a deal with Telefonica for O2 as they would have to come to a deal with both DT and FT for EE as they both have a 50:50 stake...
Wonder how that will pan out? Surely buying EE in this case would be better?
Depends on how much they're willng to pay. Buy O2 and get a network in dire need of upgrading, or pay a premium for EE but save on network upgrade costs in the long term.
I'm talking more the legalities of the MVNO deal signed. If BT buy O2 then that cannot go ahead.
EE also has the spectrum deal with BT and seems to be leaning toward wanting to do rural 4G broadband (as they have done in Cheshire and have announced a plan for Cornwall), which might be a good fit for BT's existing rural broadband plans (some of them are currently pushing customers to satellite internet whereas 4G would be several times better)
Its all go
http://www.bbc.co.uk/news/live/business-30130459
I reckon one of the reasons BT wanted to get rid of O2 in the first place was the cost of that pricey 3G licence which cost them £4.03bn plus they would have to "Invest in 3G network upgrades" clearly that was a bit of a disaster.
EE at least have a network that is worth buying as they have spent some money on it. BT I suspect culturally more like O2 and their dead slow and stop pace of doing things is more akin to BT. Invest as little as possible and drag it out as long as you can.
My head hurts....
See? Mobiles DO give you headaches!
IIRC EE already contracts BT to run that for them, so it would probably be a simple move to put them onto either of BT's ISPs
http://www.choose.net/media/guide/news/orange-broadband-outsource-to-bt.html
800,000 broadband customers might add to the attraction of EE for BT.
EE just lease the space from BTO like most other ISP's. BT don't run the business...
I'm aware of what many ISPs do, but does EE actually have a network of their own?
"In March 2010 Orange announced that they were handing over the management of their network to BT Wholesale and starting to sell a wholesale, or non-LLU, product.
Maybe EE "run the business" but BT appears to be doing the leg work to provide the service?
(just like how BT provided a "white goods" broadband service for the Post Office before they moved to TalkTalk - BT provided the service from end to end, the PO did the billing and customer services and decided what to charge)
(forum won't let me do that all caps!)
Of the two the most likely aquisition would be O2, purely because of the spectrum allocation. It is likely BT would have to divest its 2600 spectrum if it was to take over EE. Where as with O2 it would free from those concerns. things are starting to get interesting now....what with vodafone now entering the quadplay segment from early next year and BT potentially getting back into the mobile market, we really are in for a treat.
At least phones have come on leaps and bounds since then!
http://i3.minus.com/ibtqKnnaXSSikC.jpg
Must say I am surprised BT is considering to buy O2 they apparently can't find money to pay FTTP in a lot of areas like was originally said but can somehow find money to buy a mobile operator.
BT's FTTP rollout verges on random, yesterday I saw a rural farmhouse that could get FTTP (the telegraph pole that has the fibre on it being basically for their sole exclusive use), and in other places I've seen half of the street have FTTP and half have FTTC
BT spunked a shit load of money on Football rights. They will be quite happy to do the same on a Mobile Network. Yeah BT know where their priorities are and its not on Fibre or any sort of broadband infrastructure for consumers >:(
Are you sure?
Not £7.1 billion?
The original sale price was £17bn. I think there was a typo in one of the earlier reports.