FT: Virgin sells national broadband customers

[jb66]

Originally Posted by Ignitionnet

I'm sure TalkTalk staff can. Probably be a while before the Virgin National brand is completely extinguished and migrated to TalkTalk's systems so I imagine things won't change initially.

Once it is migrated I see no reason why TalkTalk would give discounts to the staff of a competitor, so...

Off net isn't a competitor to on-net. Lots of companies do deals with competitors, sainsburys staff get 20% off at Vodafone for example

[Ignitionnet]

Originally Posted by jb66

Off net isn't a competitor to on-net. Lots of companies do deals with competitors, sainsburys staff get 20% off at Vodafone for example

TalkTalk serve the entire UK and are a quad-play provider. There's a fair bit of competition there.

TalkTalk's idea of on-net is quite different from Virgin's. TalkTalk's 'on-net' passes ~95% of the UK population so the vast majority of the Virgin National customers will be 'On-net' to TalkTalk.

I don't think staff of companies they bought customer bases from in the past have kept the discounts unless the staff were 'bought' as part of the deal.

[Pierre]

Originally Posted by Horizon

Hence the circles comment, as Cable & Wireless (as it was then) was one of the major parts that now make up VM today.

Only the cable side of things. The C&W fibre backbone has never been part of VM.

A deal between Vodafone and Liberty has been long mooted since vodafone sold their stake Verizon. However they have decided to enter the TV market without this, which suggests that they don't think the cost of Liberty would be of value to their shareholders.

Vodafone have enough issues with the legacy C&W network. It needs huge investment, and I think they think that they need to invest in that rather that acquire a company such as Liberty.

[Horizon]

I knew Vodafone would get involved in tv at some point, but I am surprised they have chosen this route. I guess Liberty is a bit too big for their liking, but if VM had remained independent, I am sure they would have been more interested in some tie up.

Apart from BT, VM have the only network (with their own ducts) that goes into people's homes. That is a valuable asset. Liberty have made clear their long term goal is to grow the scale of the company up to the point when it does become an attractive buy for a bigger fish. I just don't understand why Vodafone wish to spend money on C&W's crappy network while still having to use BT as well, if they want to pipe tv into people's homes, when there is a network all ripe for the purchase. It's not as if they don't have the dosh.

Vodafone are too far behind to make any impact in the tv space and because they don't have their own consumer network, they can't leverage the benefit of owning their own network like BT do with bundling their own sports channels and broadband together.

With EE about to launch a tv service too, there are too many companies fighting over scraps. VM has a consumer network, at some point someone is going to be interested in buying it. Me thinks we've not heard the last of this.

[qasdfdsaq]

Vodafone's reason for purchasing C&W had very little to do with TV.

[Pierre]

Originally Posted by qasdfdsaq

Vodafone's reason for purchasing C&W had very little to do with TV.

C&W had a very nice Enterprise Business that Vodaphone wanted, just that it came with a Hugh outdated worldwide fibre network.

[Ignitionnet]

Originally Posted by Horizon

I just don't understand why Vodafone wish to spend money on C&W's crappy network while still having to use BT as well, if they want to pipe tv into people's homes, when there is a network all ripe for the purchase. It's not as if they don't have the dosh.

C&W's 'crappy' network is the most extensive fibre network, BT excepted, in the country. Vodafone wanted the ducts and fibre to backhaul their mobile masts. Nothing at all to do with consumer fixed-line services but being able to deliver more content via mobile at a lower price thanks to owning rather than having to rent capacity.

Originally Posted by Horizon

With EE about to launch a tv service too, there are too many companies fighting over scraps. VM has a consumer network, at some point someone is going to be interested in buying it. Me thinks we've not heard the last of this.

Vodafone's main business in the UK will, by a country mile, continue to be mobile. The fixed line service is probably going to be a retention tool and a value-add.

Liberty aren't going to sell the jewel in their crown, VM, separately from the rest of the group and I can't think of anyone who would want to take on $40 billion in debt along with paying probably $15 billion for the entire group.

So far things have been pretty predictable. It was obvious Telewest would be acquired by ntl, it was obvious that eventually Liberty would acquire both, just a question of timing and the order of events.

[qasdfdsaq]

Originally Posted by Pierre

C&W had a very nice Enterprise Business that Vodaphone wanted, just that it came with a Hugh outdated worldwide fibre network.

Indeed, but it also gave them the dubious honour of being the only UK mobile operator to own their own fibre and backhaul.

Though in the end they, and everyone else, still rely BT/Openreach a hell of a lot, especially up in Scotland where VM have a very limited footprint.

---------- Post added at 11:43 ---------- Previous post was at 11:43 ----------

Originally Posted by Ignitionnet

C&W's 'crappy' network is the most extensive fibre network, BT excepted, in the country. Vodafone wanted the ducts and fibre to backhaul their mobile masts. Nothing at all to do with consumer fixed-line services but being able to deliver more content via mobile at a lower price thanks to owning rather than having to rent capacity.

^^ This.