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.
http://www.ispreview.co.uk/index.php...bt-merger.html
https://assets.digital.cabinet-offic...submission.pdf
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.”
“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