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Originally Posted by 1andrew1
If it acquired TalkTalk I'm pretty sure it would need a budget brand. It would lose a lot of the customer base by just moving them onto VM contracts. This loss would need to be balanced by the costs of running two brands and increased revenue from those TalkTalk customers it did successfully move onto VM contracts but the fact that its peers have budget brands suggests it works.
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I suppose VM could launch some value bundle including its stream tv service, but we'll see.
---------- Post added at 21:14 ---------- Previous post was at 21:05 ----------
Quote:
Originally Posted by 1andrew1
Agreed. The article had this to say on that subject
I would have though Vodafone would be a better combination, given their use of City Fibre and Open Reach like Talk Talk and value focus. However, Vodafone are busy trying to merge with Three and not flush with cash which is what TalkTalk's owners need.
The Telegraph also suggested regulatory issues might be a concern with Vodafone. I thought this would be less of a concern as they're not as large a player in broadband as VM.
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Quote:
Originally Posted by 1andrew1
Reflecting on this, VM O2 is the only big UK ISP not to have a value brand. Sky has Now and BT has PlusNet. VM O2 now has the value mobile brand GiffGaff in its portfolio which it could apply to TalkTalk's consumer arm if it acquired the business.
Although it would obviously be a lot of work moving TalkTalk customers over to cable connections where available, combining the two ISPs would give VM O2 market share getting close to BT's and leapfrogging Sky.
How the regulators would view it is another matter but given the context of TalkTalk's finances there might be some flexibility. A potential remedy that could suit both sides is if VM O2 agreed to sell on those TalkTalk customers who weren't in its cabled areas, perhaps coming to an arrangement with Vodafone in advance.
Market share- BT/EE/PlusNet 33.6%
- Sky/Now >24.04%
- VM 20.18%
- Talk Talk/Shell 11.65%
- Vodafone 4.36%
Per: https://www.choose.co.uk/broadband/guide/market-share/ |
Interesting stats there.
My take on this, as has always been, is that we'll end up with three "cable" companies each with their own mobile operator. Perhaps there may be a forth once CityFibre and all the altnets come together, as I expect they will.
It is clear from those stats, that Vodafone has lost the broadband war, not that it was ever in it to begin with. So what happens next? Well look at the list.... it's clear. Who on that list doesn't have a mobile co?...