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Old 17-06-2012, 16:27   #7
Stuart
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Join Date: Jun 2003
Location: Somewhere
Services: Virgin for TV and Internet, BT for phone
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Re: Boots owner to takeover Everything Everywhere?

Quote:
Originally Posted by Telly Bear View Post
If Sky can raise £2.2billion for football rights I'm sure getting £billions for a mobile network will be easy enough.
They can raise £2.2 billion for the football rights because they know that enough people will pay the subscription to see the premiere league clubs. Premiere League fans will not be able to see the matches sky has the rights to anywhere (legally) unless Sky gets at least some money for them watching it. This means Sky can pretty much charge what it wants.

The same cannot be said of mobile phones. The market is saturated. A saturated market means that prices have to be kept low. This is why Orange and TMobile merged in the first place. It was not viable to keep both.

Now, you could argue that the ISP market was saturated when Sky tookover Easynet. It was. However, Easynet cost about £210 million. Even all these years later, and with Sky's upgrades to the Easynet network, I'd be surprised if they've spent more than £1 billion on Sky Broadband.

I think that even if they had the will, they would have trouble raising several billion for a takeover of a mobile phone network.
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