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O2 UK no longer for sale - Telefonica


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Old 30-06-2016, 10:05
jabbamk1
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Telefonica has pulled out of plans to sell O2 UK, consolidating the unit back into its financial statements and no longer presenting it as discontinued operations, according to a filing submitted to Spanish markets regulator CNMV. The announcement comes after the European Commission blocked Telefonica’s GBP 10.3 billion sale of O2 to CK Hutchison due to competition concerns. However, Telefonica added that it “continues to explore different strategic alternatives for O2 UK, to be implemented when market conditions are right”.

The company was expecting to use proceeds from the sale to reduce some of its EUR 50.2 billion debt and was even considering a minority sale of O2 UK in an IPO as a backup plan. However, Bloomberg reported that market instability following the UK vote to leave the EU has ruled out that possibility in the short term, with Telefonica now risking a credit downgrade by Moody’s if it can’t get an alternate deleveraging plan in place by the end of the year

Source: Telecompaper & Bloomberg

http://www.bloomberg.com/news/articl...s-brexit-foils
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Old 30-06-2016, 10:57
Zebb
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EUR 50.2 billion debt? Just put it out of it's misery and go bust, blame Ofcom, then there will be three networks.
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Old 30-06-2016, 12:34
camer_000
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EUR 50.2 billion debt? Just put it out of it's misery and go bust, blame Ofcom, then there will be three networks.
They would find someone to buy it. The customer base is just too big for an operator not to take the chance on. If Telefonica went bust O2 would probably be fairly cheap to buy IMO.
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Old 30-06-2016, 12:38
de525ma
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O2 UK is profitable. Telefonica (its parent) has debts.

Same reason that it was spun out from BT in the first place.
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Old 30-06-2016, 13:57
jonmorris
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I think as O2 improves its network, it could actually do okay. I think it still has a great reputation, and many users are totally oblivious to how different O2 might be to other networks (likely assuming if O2 is bad, they're all bad).

So, it makes sense to me.
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Old 30-06-2016, 16:58
TheBigM
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I think Sky or Virgin might buy them.

Virgin would make the most sense.
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Old 30-06-2016, 17:23
Richard1960
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I think Sky or Virgin might buy them.

Virgin would make the most sense.



Hmmm i an with Virgin Mobile they operate on a big network EE with very good coverage if they bought 02 their coverage would go down in a jiffy.
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Old 30-06-2016, 18:03
M1kos
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O2 are doing ok . 4G is at over 80% pop now and apart from heavliy populated areas there speeds are ok. the rollout is doing well with vodafone and they have sucessfully added 4G 1800 to many sites.... I think its the right move in a year the 4G will be up to 95% giving remote located subscribers new options
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Old 30-06-2016, 19:54
jchamier
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[/b]Hmmm i an with Virgin Mobile they operate on a big network EE with very good coverage if they bought 02 their coverage would go down in a jiffy.
Virgin don't offer 4G (on consumer price plans), and the network they operate on is now owned by their big competitor BT - so that would be a reason to switch, to either O2, Vodafone or Three.

Who knows!
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Old 30-06-2016, 21:04
david16
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Virgin don't offer 4G (on consumer price plans), and the network they operate on is now owned by their big competitor BT - so that would be a reason to switch, to either O2, Vodafone or Three.

Who knows!
Don't EE run their network the way they always have with the MVNO's officially MVNO's of EE, not of BT.
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Old 01-07-2016, 00:26
Randomguy1
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Don't EE run their network the way they always have with the MVNO's officially MVNO's of EE, not of BT.
EE is owned by BT
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Old 02-07-2016, 23:16
neil79
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I think as O2 improves its network, it could actually do okay. I think it still has a great reputation, and many users are totally oblivious to how different O2 might be to other networks (likely assuming if O2 is bad, they're all bad).

So, it makes sense to me.
It obviously depends on what areas you use your phone. O2 network is far better in my area than EE/BT is. EE falls over badly indoors compaired to O2/Giffgaff. Don't believe the EE/BT hype
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Old 03-07-2016, 01:44
DevonBloke
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Thing is O2 may be ok now but how the hell are they going to cope if they get a lot more smartphone users? They don't have the spectrum.
I mean EE are adding 2600 left right and centre to keep up with demand as they have a very high number of smartphone Internet users.
O2 are going to find themselves in a position where as they increase their data users they won't have the capacity to cope with it.
It's hard to see how that's going to play out.
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Old 03-07-2016, 01:57
Pedro_C
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O2 has a few approaches they are using to keep acceptable performance in ultra dense areas:
Six Sector masts. Some are 4G 800, some are 4G 800MHz and 4G 1800MHz, A six Sector mast with their 4G 800MHz and 4G 1800MHz will be roughly equivalent to 30MHz on a three sector, which is not an insignificant amount of capacity.
Microcells: 3G 2100MHz or seemingly 3G 2100MHz and 4G 1800MHz.
O2 Wifi: removes some load from 3G/4G.

O2 Six Sector Masts + Microcells

I am planning to do a video on this very soon
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Old 03-07-2016, 14:32
lightspeed2398
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It obviously depends on what areas you use your phone. O2 network is far better in my area than EE/BT is. EE falls over badly indoors compaired to O2/Giffgaff. Don't believe the EE/BT hype
How about travelling between areas? I was on a route that was 4g/3g on EE pretty much 98% of the way yesterday, o2 was probably 60% 2G it was that shocking. Others on here have similar experience.

Plus EE are going to launch their 800 layer at some point which will just about wipeout the o2/vod indoor coverage advantage.

In cities o2 are ok and they'll provide a usable service but they get bowled over by EE pretty much everywhere I go.
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