[Everything Goes]

Ofcom has given its approval to BT's take over of EE but the deal is still far from a done deal as the CMA are still looking into it and will report in November. Interestingly Ofcom have noted BT's vertical integration and the dangers of BT abusing its position, but Ofcom want to regulate it.

Quote:

Ofcoms Statement (Extract Linked to Mobile Backhaul)

We recognise that, as a vertically integrated firm, BT may have the incentive to discriminate in favour of its downstream divisions, and we impose regulation to address such concerns. We believe the current and future proposed regulation that we apply to BT will limit BT’s ability to discriminate over price, quality and innovation in the provision of leased lines.

While we believe that regulated access to dark fibre (which is proposed as a remedy in our 2016 BCMR consultation) would have the ability to limit any potential attempts to discriminate over product innovation in mobile backhaul, this will only be the case if all MNOs have opportunities to take up dark fibre.

Given that the MNOs currently have long-term contracts with BTWholesale, which include volume commitments, the effect of these contracts may be to limit the extent of dark fibre MNOs can take up in the short term. This could be particularly concerning if BT were to choose to release EE (or MBNL) from its contractual commitments post-merger.

http://www.ispreview.co.uk/index.php...bt-merger.html

https://assets.digital.cabinet-offic...submission.pdf

[Aye Up]

If BT spins out wholesale and merges it with Openreach, then those issues can be mitigated almost instantly. I suspect they will be forced to divest some 2600 spectrum and also sell off EE broadband customers to another provider. Plusnet might be a satisfactory option, time will tell.

[clewsy]

Open reach won't be split off as the shareholders will have years of court battles and arguments.

That's why it will just be more regulation I suspect to ensure its more open to all.

[Tassium]

So heavy-handed regulation of a dysfunctional market..

Boosting Ofcom of course.

[Everything Goes]

Interestingly Ofcom seem to be keeping the Three and O2 merger in mind:

Quote:

We should point out that MBNL (Mobile-Broadband Network Limited) is a reference to the joint 50/50 network sharing and investment umbrella company that exists between Three UK and EE, which only last year agreed a new £1bn investment to improve 4G services (here).

In keeping with this Ofcom are also being mindful of the proposed Three UK and O2 merger, which is likely to be much more contentious due to how it would reduce the number of primary Mobile Network Operators (MNO) down to three and only one of those would be independent of a major fixed line network. But that is seen as having little impact on BT’s deal as they weren’t a primary MNO to begin with.

http://www.ispreview.co.uk/index.php...bt-merger.html

[Zebb]

The staff in a Three shop the other day had a phone 'powwow' the other day about Three UK and O2 deal and they told me nothing would happen until at least April next year, so don't hold your breath.

[clewsy]

It will probably take a few years after the deal is stamped to make it all work. Look how long the Orange and T-Mobile share took.