UK fixed-line incumbent BT is poised to make an announcement this week for the acquisition of either Telefonica-owned O2 or Deutsche Telekom and Orange’s joint venture EE, according to several reports.
BT is reported to have held crunch talks with the…
UK fixed-line incumbent BT is poised to make an announcement this week for the acquisition of either Telefonica-owned O2 or Deutsche Telekom and Orange’s joint venture EE, according to several reports.
BT is reported to have held crunch talks with the owners of both mobile operators over the weekend after holding internal meetings last week to assess its options.
BT first disclosed preliminary talks on 24 November, when it said it had been approached by shareholders in the wireless carriers regarding a potential deal.
Britain’s four mobile players have been braced for BT’s entrance into their market by the middle of next year when the fixed-line operator is due to launch its MVNO.
Reports have suggested a BT acquisition of O2 is the likeliest outcome but the incumbent is still studying a potential combination with EE.
BT may want the consideration to include stock and some of its shareholders have signalled they are comfortable with a rights issue. The operator is set to shell out on Premier League football rights – the latest auction began last Friday – another reason why it would be reluctant to fund the whole deal with cash.
Should BT be able to acquire a mobile operator it will become the first telco in Britain to offer true quad-play bundles, where consumers sign up for mobile, fixed-line, broadband and pay-TV with one company.
The model has taken off in mainland Europe and is attractive to UK players because of expected lower churn rates.
