Telewest / NTL Finance Data
 

Just for the curious, Telewest have recently been upgraded in outlook by a couple of the big merchant banks:

http://finance.yahoo.com/q/ud?s=TLWT

Meanwhile NTL were in that same Morgan Stanley valuation downgraded:

http://finance.yahoo.com/q/ud?s=NTLI

NTL are now valued at approximately $5.34B

Telewest $4.49B

Telewest are about 2/3rds the size of ntl in terms of homes passed, however they have a higher broadband penetration in their areas than ntl, and according to the stock markets are worth far more than their relative size suggests.

Of course the fact that ntl have lost over 10% of their value recently might be a minor issue.

Just a little something for the merger watchers out there, or those holding shares in both companies. The relative closeness in valuations along with the more positive outlook on Telewest shares should make the merger talks more interesting.

I'd love to be a fly in the wall in the board meetings. Any of the old school ntl /Cabletel who still have their jobs thinking that maybe it wasn't such a hot idea trying to be better at telecomms than BT, better at TV than BSkyB and better at business services than BT, Cable and Wireless or Energis, while building the assets to do this with someone else's cash?

Oooo interesting idea, who'd like to see the residential cable side of ntl split from the business/telecomms/wholesale side? I think that'd be quite a good thing, have the cable network run by a cableco, rather than a telco. Views?

P.S. The second option is supposed to end 'it is' :)

Re: Telewest / NTL Finance Data
 

Fixed. :)

Re: Telewest / NTL Finance Data
 

I think doing this might raise anti-competition issues->

if the network was owned and managed by "ntl cable management plc" i have a feeling that they would have to allow other companies to use the network- only allowing "ntl residential services" to use it could be in breach of european competition law...

nb i am not 100% sure about this i would have to do some research to be certain

Re: Telewest / NTL Finance Data
 

They wouldn't have to let other companies use the network since it was privately funded whereas BT's network was funded by tax payers money therefore they have to allow other companies to use it.

Re: Telewest / NTL Finance Data
 

Wouldn't change a thing MB, ntl have already been assessed to not have significant market power by Ofcom, and this would be no departure from existing regulations, they apply whether the company were seperated or not.

That's irrelevant, you could buy your network with your piggy bank and if Ofcom decided you had SMP in your area you'd have to open it up. The only reason BT have to open their network is that they have been adjudged to have SMP. Tax payer contribution or otherwise is irrelevant, and actually BT's network has almost exclusively been built from the profits of previous network. It was quite a nice cashcow for the govt at the time.

Re: Telewest / NTL Finance Data
 

I think having a split company which have 2 divisions that concentrate on their own areas would be an excellent idea.

1. Residential customers would get undivided attention from NTL's Home Dept.
2. Business customers would get undivided attention from NTL's Business Dept.
3. One company would not be juggling 2 major areas and if in 2 completely independent entities, could concentrate on one sole area (either Home or Business).

Re: Telewest / NTL Finance Data
 

Well I think it wouldnt hurt, Telewest seem to be doing something right looking at those figures and NTL must be still still doing stuff wrong.

Re: Telewest / NTL Finance Data
 

It could easily be done, ntls Core Network is owned by ntl:Networks

Telewest don't have such a seperate Core Network like ntl.nor did C&W. They used the Mercury Core Network and then took it with them.

ntl is structured such that a seperation could easily be achieved.

Re: Telewest / NTL Finance Data
 

Seperating internet, TV and telephony would appear to be going against the way that the industries are moving. All three services will probably be supplied via IP in the not too distant future.

Instead of developing different, competing methods of delivery the best features of each should be used to provide the ultimate consumer experience.

Perhaps the ideal solution would be for a single national company to control the networks and delivery of cable, telephony and satellite companies and sell carriage to retail vendors including BT, NTL, BskyB, etc. There could be benefits from reduced operating costs and better focus on development and improvement of services. Perhaps government funding to bring about quicker change and re-establish Britain as a leader in technology and to help provide services to areas that the big boys currently find uneconomical to service.

Re: Telewest / NTL Finance Data
 

So, who would own the network and maintain it?

Re: Telewest / NTL Finance Data
 

You split it down. There is already a sub-company within ntl called ntl National Networks Ltd.

They would own and maintain the National Fibre Network down to say Head End/ Hub level.

ntl:Home/Business would own the regional Networks that would be maintained by COBI.

Just a theory but very workable.

I don't think its a quesiton of seperating the products provided, just the ownership of the networks.

ntl National Networks Ltd would become, as they already are, a National Carrier the same as, Kingston (Torch), Energis, Worldcom, Level 3, etc etc. ntl:Home would be customer of National Networks.

Re: Telewest / NTL Finance Data
 

I think the timne to set this up would be after the inevitable Telewest merger and all the associated redundancies.

For staff, there's more pain yet before any gain. Luckily I'll be out of it all in less than a month.

Re: Telewest / NTL Finance Data
 

I have heard today from a reliable source that ntl will be making an announcement in about two weeks time.

It will be announcement to the city that ntl intend to buy out Telewest and that they are to start due diligence etc,etc.

you heard it here first.

Re: Telewest / NTL Finance Data
 

For the curious 'buy out' is could be pretty much the same as merger in this case, all mergers require one company to buy out another, just it's going to be with stock in the new company, so stockholders in Telewest will be paid for their TW shares with shares from the combined company.

Depends on how the owners of the companies, those lovely lovely people who owned the bonds and own most of the shares want to play it though.

Re: Telewest / NTL Finance Data
 

Funny words, a company that apperently has no money buying out another company.