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Vodafone to buy Sky? |
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#1 |
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Join Date: Oct 2012
Posts: 466
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Vodafone to buy Sky?
Please bare in mind that this is in the Express! ![]() Quote:
Vodafone plotting to swoop on Sky: Industry shake-up to spark wave of mergers in new year http://www.express.co.uk/finance/cit...ecoms-shake-up
VODAFONE could be set to make a sensational multibillion-pound offer for Sky as a telecoms industry shake-up gets underway. Published: 13:42, Sun, December 21, 2014By HELEN MASSY-BERESFORD Voadfone is looking to bid for Sky, valued at around £15 billion According to people familiar with the matter, Vodafone could launch a new year bid for the satellite broadcaster, which is valued at about £15 billion. Paolo Pescatore, a director at analyst CCS Insight, said: "We predict that Vodafone buys Sky next year. "It would give the company access to the fast-growing pay TV market. They are a good fit strategically and Vodafone has the cash. "It would be very complementary in the UK, Germany and Italy." The move would be driven by demand from consumers for "quad-play" providers offering television, fixed-line, mobile and broadband in one bundle. Sky is already reported to be in talks with Vodafone to hire some of its infrastructure, enabling it to provide mobile phone services. The two firms declined to comment. Another source said: "Each move in the puzzle forces rivals to react. "There's definitely the potential for Vodafone and Sky to happen. Vodafone is pretty keen to build up its offering." Last week BT revealed that it is in exclusive talks to buy EE for £12.5 billion from owners France Telecom and Deutsche Telekom. This would bring together fixed-line, mobile, broadband and TV services, supporting the trend towards communications giants offering their customers complete packages. Pescatore said so-called "quad-play" services could be the beginning of a longer-term multi-play trend, in which bundles of telecoms, TV and internet could be broadened by the likes of car and home surveillance services. "We are seeing a trend across Europe towards multi-play services. The UK has been behind in quad-play," he said. BT's bid to acquire EE could spark a flurry of deals that could change the telecoms landscape in 2015. Analysts believe that O2, owned by Spain's Telefonica, would need to reflect on its position in the market. One said: "It does not have cable or much fixed line. Is mobile enough if others offer triple-play or quad-play?" After Three's takeover of O2 in Ireland, the deal could be replicated in the UK, one analyst said. "TalkTalk is small enough that it could easily be a target for a big player," the analyst added. |
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#2 |
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Join Date: Mar 2013
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This has been talked about for a while now it would fit in nicely there is just concern that it wouldn't get approval because of EU concerns.
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#3 |
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Join Date: Mar 2001
Location: North West
Posts: 4,884
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Quote:
This has been talked about for a while now it would fit in nicely there is just concern that it wouldn't get approval because of EU concerns.
I suspect Vodafone well play Libery Global off against Sky to get the better deal. Sky has universal coverage for its TV product, Virgin doesn't. However its widely recognised that Virgin have the better broadband platform compared to the biggest players in the market (matter of opinion I know). Which ever they go for, will require substantial investment. Vodafone has a soft partnership with Sky at the moment in terms of value added content, Vodafone is about to start trials of an over the top service similar to YouView, however NowTV and Netflix will be the anchor for the platform. This is where its delicious for consumers, BT (who are looking to buy EE) and Vodafone have large balance sheet. They can buy a company without taking on any debt, what will probably happen is the selling companies will get a mix of shares and money. This will ensure that any purchase doesn't become a poison pill in the future. Whatever happens in the coming months BT and Vodafone will be the biggest winners no matter the outcome. That in turn will trickle down to customers in the form of new packages and price points. Sky's balance sheet is now tainted because of the European acquisitions, it was financed by debt being loaded on to the former BskyB balance sheet. Its credit rating has dropping significantly as a result. PayTV is stagnating in the UK, the only way SKy can really grow is through partnership or acquisition. Broadly speaking given that Sky is the monopoly provider to some extent, growth oppurtunities are limited. Like any dominant player, eventually they will all come down with a bang. 2015 is going to benefit the UK consumer more than at any other point since the availability of free broadband from TalkTalk. |
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#4 |
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Join Date: Nov 2009
Posts: 3,921
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I hope they do. Sky is an impossibility at the moment for me but Vodafone should open it up for me.
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#5 |
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Join Date: Oct 2012
Posts: 466
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I hope they do. Sky is an impossibility at the moment for me but Vodafone should open it up for me.
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#6 |
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Join Date: Sep 2005
Location: Leyland
Posts: 1,971
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These rumours have been around for years. Vodafone buying TalkTalk is another old one..
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#7 |
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Join Date: Oct 2005
Location: UK
Posts: 3,291
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These rumours have been around for years. Vodafone buying TalkTalk is another old one..
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#8 |
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Join Date: Sep 2013
Location: United Kingdom
Posts: 509
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Vodafone have also announced they're entering the home broadband and TV market in 2015 anyway.
Buying Sky would just give them a network they don't have to build. As well as a large customer base to push mobile deals on. |
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#9 |
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Join Date: Oct 2012
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Quote:
Vodafone have also announced they're entering the home broadband and TV market in 2015 anyway.
Buying Sky would just give them a network they don't have to build. As well as a large customer base to push mobile deals on. Vodafone already own the ex Bulldog network, from the C&W buyout. |
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#10 |
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Join Date: Oct 2004
Posts: 14,641
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What network are you referring to?
Vodafone already own the ex Bulldog network, from the C&W buyout. |
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#11 |
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Join Date: Mar 2013
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Vodafone has been building out it's network reason why we have seen O2 4G masts going live first because Vodafone have been building out the back end. I honestly expect Vodafone will try and buy Liberty Global so as to not make themselves customers of BT. Plus the benefits they would get in other countries as well. It makes far more sense then buying Sky does.
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#12 |
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Join Date: Oct 2004
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Quote:
Vodafone has been building out it's network reason why we have seen O2 4G masts going live first because Vodafone have been building out the back end. I honestly expect Vodafone will try and buy Liberty Global so as to not make themselves customers of BT. Plus the benefits they would get in other countries as well. It makes far more sense then buying Sky does.
Of course VF/C&W has plenty of fibre for business and other services. Buying a cable company would not be new for them though, they bought some cable companies in Germany a few years ago. Wouldn't help for the approx 50% of the country that can't get Virgin though. |
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#13 |
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Join Date: Mar 2013
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I was talking about LLU for ADSL/PSTN - if Vodafone wants to become a major consumer ISP like Sky or TalkTalk they'd need to start putting more exchanges onto their network.
Of course VF/C&W has plenty of fibre for business and other services. Buying a cable company would not be new for them though, they bought some cable companies in Germany a few years ago. Wouldn't help for the approx 50% of the country that can't get Virgin though. |
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#14 |
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Join Date: Oct 2004
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There already is GEA-FTTC, where the CP can rent the port in the FTTC cabinet and have its traffic hauled to the nearest fibre headend. Having LLU in the same locations makes the handover much easier.
Sky and TalkTalk already use this, if you buy their fibre service you aren't using the BT Wholesale network, you are using Openreach from cabinet to exchange and then the traffic is handed over to their own equipment and onto their own network. That's my understanding of it anyway I'm not sure anyone would ever want to unbundle the cabinets though (there's that one cabinet Rutland Telecom did, and the few cabinets done by the now defunct Digital Region, I guess). You'd get very limited coverage at quite high cost, and that investment would be obsoleted if BT ever does FTTP on a wide scale. Going in at the exchange level makes more sense as it works better with everything BT is doing or may do later on. It'd also reduce the hassle as far as vectoring is concerned |
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#15 |
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Join Date: Mar 2013
Posts: 4,249
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Quote:
There already is GEA-FTTC, where the CP can rent the port in the FTTC cabinet and have its traffic hauled to the nearest fibre headend. Having LLU in the same locations makes the handover much easier.
Sky and TalkTalk already use this, if you buy their fibre service you aren't using the BT Wholesale network, you are using Openreach from cabinet to exchange and then the traffic is handed over to their own equipment and onto their own network. That's my understanding of it anyway I'm not sure anyone would ever want to unbundle the cabinets though (there's that one cabinet Rutland Telecom did, and the few cabinets done by the now defunct Digital Region, I guess). You'd get very limited coverage at quite high cost, and that investment would be obsoleted if BT ever does FTTP on a wide scale. Going in at the exchange level makes more sense as it works better with everything BT is doing or may do later on. It'd also reduce the hassle as far as vectoring is concerned |
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#16 |
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Forum Member
Join Date: Feb 2013
Posts: 1,728
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Quote:
I'm not sure anyone would ever want to unbundle the cabinets though (there's that one cabinet Rutland Telecom did, and the few cabinets done by the now defunct Digital Region, I guess). You'd get very limited coverage at quite high cost, and that investment would be obsoleted if BT ever does FTTP on a wide scale. Going in at the exchange level makes more sense as it works better with everything BT is doing or may do later on. It'd also reduce the hassle as far as vectoring is concerned
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