UK telecoms minister Ed Vaizey has welcomed the takeover of UK cableco Virgin Media by US-based cable giant Liberty Global.
In a keynote speech at the Cable Congress in London, Vaizey described the deal as positive for consumers as it would ensure…
UK telecoms minister Ed Vaizey has welcomed the takeover of UK cableco Virgin Media by US-based cable giant Liberty Global.
In a keynote speech at the Cable Congress in London, Vaizey described the deal as positive for consumers as it would ensure continued investment in broadband.
He added the government was “absolutely delighted” that Liberty would move its headquarters to the UK following the successful closing of the US$23.3bn transaction.
Speaking to TelecomFinance on the sidelines of the event, Vaizey said he did not worry that competitive issues could arise from the parallel takeover of Telefonica UK‘s fixed line assets by BSkyB. That transaction, although small with a value of up to £200m, will see BSkyB become the UK’s second-largest broadband provider, overtaking Virgin Media.
Asked about the lower-than expected proceeds from the UK’s recent 4G auction, he said the £2.34bn raised was “not out of kilter” with recent sales in other European countries. Lower costs would enable operators to spend more on infrastructure.
In the government’s autumn budget last year, the chancellor George Osborne had said he expected to raise £3.5bn from the sale of frequencies.
Vaizey said the speed of the roll out of 4G is a commercial decision that is up to the operators, but he expected to see this happening quickly because it is in their interests not to delay it.
