BT to buy EE - impact on VMobile?

[Ignitionnet]

http://www.telegraph.co.uk/finance/n...-for-12bn.html

BT has agreed to buy EE from its owners, Deutsche Telekom and Orange, for £12bn.
It is understood that the deal, paid for with a combination of cash and BT stock, will be confimed this evening.
The takeover will create a powerful combination of Britain's biggest fixed-line telecoms operator and its biggest mobile operator. BT chose EE over O2, owned by the Spanish telecoms giant Telefonica, after a weekend of intensive negotiations with both sides. Each would-be seller sought to offer the best terms to BT in a reverse auction.

VM are an EE MVNO. Wonder if this will have any impact on that?

[muppetman11]

Originally Posted by Ignitionnet

http://www.telegraph.co.uk/finance/n...-for-12bn.html



VM are an EE MVNO. Wonder if this will have any impact on that?

It would seem its competitors may plot some regulatory backlash according to this article on the BBC website.

[Ignitionnet]

Originally Posted by muppetman11

It would seem its competitors may plot some regulatory backlash according to this article on the BBC website.

It would hurt VM Business however relatively trivial to divest themselves of the spectrum their small mobile venture has and they can, of course, run EE in a similar fashion to their existing Retail business.

[Russ]

I'm quite surprised none of our 'connected' members knew this was coming (unless of course they did but were "sworn to secrecy"), not sure I trust BT to run a mobile network seeing as they bought out of one over 10 years ago. Still they will be able to offer a fixed line too so let's see how it goes.

[Kushan]

So now we have BEET, I wonder what Three are going to do - they were talking about buying O2, which would be an interesting change in the mobile landscape.

Then if Vodafone buys Virgin...

[Pierre]

I don't think this will have any bearing on VM Mobile

VM will only be using the EE/ BT RAN. No different really to all the fixed line companies that use BT's copper access network.

Originally Posted by Kushan

Then if Vodafone buys Virgin...

Vodafone can't buy "Virgin" they would have to buy Liberty Global, which they have already said doesn't fit in with their plans because there are a lot of Liberty companies in countries where vodafone have no interests.

[Kushan]

Originally Posted by Pierre

Vodafone can't buy "Virgin" they would have to buy Liberty Global, which they have already said doesn't fit in with their plans because there are a lot of Liberty companies in countries where vodafone have no interests.

Well they've certainly been contemplating it and something like BTEE could change their minds on the matter.

Bah! I still wouldn't use them however big they become..

[Horizon]

Originally Posted by Ignitionnet

http://www.telegraph.co.uk/finance/n...-for-12bn.html



VM are an EE MVNO. Wonder if this will have any impact on that?

Short term, no. Virgin Mobile pay their fees to EE and get their services as per whatever terms of the contract the two companies have. But of course if Vodafone do buy Liberty, it will be buy buy Virgin Mobile. Perhaps someone like Talktalk might take over Virgin Mobile if it were up for sale.

As I said on the "Vodafone Media" thread, we'll end up with three or four media/telecoms companies each having a mobile and fixed line phone services, tv and broadband as well as other media assets.

---------- Post added at 23:26 ---------- Previous post was at 23:20 ----------

Originally Posted by Pierre

Vodafone can't buy "Virgin" they would have to buy Liberty Global, which they have already said doesn't fit in with their plans because there are a lot of Liberty companies in countries where vodafone have no interests.

I wouldn't read too much into that. They can say one thing one moment and change their tune the next.

Vodafone has said they want to launch tv services next year. The Germans are waving the regulatory stick over ownership of cablecos in Germany. So, Vodafone may look to buy Liberty and widen their remit from mainly being a mobile operator to a quad play media/telecoms company.

---------- Post added at 23:34 ---------- Previous post was at 23:26 ----------

Originally Posted by Russ

I'm quite surprised none of our 'connected' members knew this was coming (unless of course they did but were "sworn to secrecy"), not sure I trust BT to run a mobile network seeing as they bought out of one over 10 years ago. Still they will be able to offer a fixed line too so let's see how it goes.

I've been saying for a while that I think BT will buy ITV, so if it happens, you know where you read it first.

But its no secret that BT wanted back into mobile, the only reason it got rid of O2 to begin with was debt. Talking of which.... BT going to war with Sky over football rights won't be good for their long term cash reserves. There you go, another thing you seen first here! And of course all the "experts" are saying buy BT shares....which is the biggest red flag there is.

[qasdfdsaq]

Originally Posted by Russ

I'm quite surprised none of our 'connected' members knew this was coming (unless of course they did but were "sworn to secrecy"), not sure I trust BT to run a mobile network seeing as they bought out of one over 10 years ago. Still they will be able to offer a fixed line too so let's see how it goes.

Most of the market didn't see this coming but the confirmation of BT's EE MVNO service moving to the next stage a couple days ago hinted at it.

---------- Post added at 23:45 ---------- Previous post was at 23:44 ----------

Originally Posted by Pierre

I don't think this will have any bearing on VM Mobile

VM will only be using the EE/ BT RAN. No different really to all the fixed line companies that use BT's copper access network.

That RAN is backhauled by VM though, and BT won't like that. They're still bitter about the loss of those contracts to VM in the first place, but once they own the mobile network that chose VM over them... Hmm.

I wonder if the regulators will make them give up a portion of the 2.6Ghz spectrum, now that the combined company will own two-thirds of the total 2.6Ghz band

[Horizon]

Originally Posted by qasdfdsaq

Most of the market didn't see this coming but the confirmation of BT's EE MVNO service moving to the next stage a couple days ago hinted at it.

---------- Post added at 23:45 ---------- Previous post was at 23:44 ----------


That RAN is backhauled by VM though, and BT won't like that. They're still bitter about the loss of those contracts to VM in the first place, but once they own the mobile network that chose VM over them... Hmm.

I doubt there is anything BT can do though, is there?? Unless there's some break clause in the contract which says that if EE comes under different ownership then all contracts can be renegotiated, but I doubt it. I wonder how BT and VM will get on....?

Originally Posted by qasdfdsaq

I wonder if the regulators will make them give up a portion of the 2.6Ghz spectrum, now that the combined company will own two-thirds of the total 2.6Ghz band

Not sure, but could the freeing up of Freeview spectrum to mobile services alter things?

[1andrew1]

Originally Posted by Horizon

I doubt there is anything BT can do though, is there?? Unless there's some break clause in the contract which says that if EE comes under different ownership then all contracts can be renegotiated, but I doubt it. I wonder how BT and VM will get on....?

Virgin Mobile is a sizeable virtual mobile operator so I'm sure BT will be keen to retain its custom. As has been suggested elsewhere, Vodafone could end up buying some or all of Liberty Global including Virgin Media.

[Horizon]

Originally Posted by 1andrew1

Virgin Mobile is a sizeable virtual mobile operator so I'm sure BT will be keen to retain its custom. As has been suggested elsewhere, Vodafone could end up buying some or all of Liberty Global including Virgin Media.

You may have misunderstood the point he was making.

Virgin Media provide backhaul capacity (fibre lines) for EE. It's nothing to do with Virgin Mobile. And he was saying that BT bid against VM and lost the contract to provide that backhaul capacity to EE. But if BT take over EE, BT may look at that backhaul contract in "unfavourable" terms and may wish to ditch VM.

[1andrew1]

Originally Posted by Horizon

You may have misunderstood the point he was making.

Virgin Media provide backhaul capacity (fibre lines) for EE. It's nothing to do with Virgin Mobile. And he was saying that BT bid against VM and lost the contract to provide that backhaul capacity to EE. But if BT take over EE, BT may look at that backhaul contract in "unfavourable" terms and may wish to ditch VM.

Misread it but I agree that BT would want to bring those in-house. Maybe there would be a break clause if the supplier (VM) changed owners; very unlikely the other way round.

[qasdfdsaq]

Originally Posted by Horizon

Not sure, but could the freeing up of Freeview spectrum to mobile services alter things?

Good point - in the past it's been mooted several times to place restrictions on networks with already high spectrum holdings when handing out future spectrum.

They could possibly be forced to give up 2600 in exchange for equal bidding rights on future 700, given that EE has the least 800 and no 900, they will desperately want it.