Virgin Media O2 to axe thousands of jobs

[Itshim]

Told hedge funds are looking in the US at that end , so who knows

[Pierre]

Originally Posted by jem

Two to three years? Four maybe, at a push.

Well, it’s owned by two massive companies, that have a lot invested in it…….too much to see it fail in that space of time.

Change it will …..go under…….it won’t.

If it all went completely south, and that is an apocalyptic if, you have three scenarios.

1. The creditors take control, the ones holding the £22billion that are now screwed, take over and try to some return, just like going into administration really.

2. The shareholders, LG and Telefonica, decide it can be rescued and is still viable and put in a cash injection.

3. Broken up and sold……tough one. O2 mobile is a going concern, the VM fibre network also good………but who wants the HFC?…..

Worrying times.

Poor decisions, I think now it has dawned that overlaying the HFC network with fibre, was a monumental error, and one that could kill the company. They should have focused on expansion, sell the HFC at a price that could compete with crazy Altnet discounts.

There is a way through this, the Altnet situation is very precarious, and they will eventually be wither or be consumed.

But the CMA evidently have no idea of how the U.K. fibre market has evolved, or indeed devolved.

The NexFibre acquisition of netomnia is a funded transaction that will see a cash injection into VMO2, through a sale of some it’s network, that would at least keep several hundred jobs at VMO2 for at least 12 months.

If the CMA block the netominia deal they will just be handing the entire U.K. telecoms sector to BT OpenReach ………..well done.

[Itshim]

Originally Posted by Pierre

Well, it’s owned by two massive companies, that have a lot invested in it…….too much to see it fail in that space of time.

Change it will …..go under…….it won’t.

If it all went completely south, and that is an apocalyptic if, you have three scenarios.

1. The creditors take control, the ones holding the £22billion that are now screwed, take over and try to some return, just like going into administration really.

2. The shareholders, LG and Telefonica, decide it can be rescued and is still viable and put in a cash injection.

3. Broken up and sold……tough one. O2 mobile is a going concern, the VM fibre network also good………but who wants the HFC?…..

Worrying times.

Poor decisions, I think now it has dawned that overlaying the HFC network with fibre, was a monumental error, and one that could kill the company. They should have focused on expansion, sell the HFC at a price that could compete with crazy Altnet discounts.

There is a way through this, the Altnet situation is very precarious, and they will eventually be wither or be consumed.

But the CMA evidently have no idea of how the U.K. fibre market has evolved, or indeed devolved.

The NexFibre acquisition of netomnia is a funded transaction that will see a cash injection into VMO2, through a sale of some it’s network, that would at least keep several hundred jobs at VMO2 for at least 12 months.

If the CMA block the netominia deal they will just be handing the entire U.K. telecoms sector to BT OpenReach ………..well done.

Hence hedge fund interest. Drive price down , jump in , break up. Cash in.

[jem]

Originally Posted by Pierre

Well, it’s owned by two massive companies, that have a lot invested in it…….too much to see it fail in that space of time.

Change it will …..go under…….it won’t.

If it all went completely south, and that is an apocalyptic if, you have three scenarios.

1. The creditors take control, the ones holding the £22billion that are now screwed, take over and try to some return, just like going into administration really.

2. The shareholders, LG and Telefonica, decide it can be rescued and is still viable and put in a cash injection.

3. Broken up and sold……tough one. O2 mobile is a going concern, the VM fibre network also good………but who wants the HFC?…..

Worrying times.

Poor decisions, I think now it has dawned that overlaying the HFC network with fibre, was a monumental error, and one that could kill the company. They should have focused on expansion, sell the HFC at a price that could compete with crazy Altnet discounts.

There is a way through this, the Altnet situation is very precarious, and they will eventually be wither or be consumed.

But the CMA evidently have no idea of how the U.K. fibre market has evolved, or indeed devolved.

The NexFibre acquisition of netomnia is a funded transaction that will see a cash injection into VMO2, through a sale of some it’s network, that would at least keep several hundred jobs at VMO2 for at least 12 months.

If the CMA block the netominia deal they will just be handing the entire U.K. telecoms sector to BT OpenReach ………..well done.

No I wasn’t suggesting that the entire company will go bust and cease trading, more of how long it will continue in its current state. And I still think 3-4 years, it’ll either be bought out or broken up - probably both.

Yes I fully agree. the altnets (well most of them) have no long-term future, I suspect most of them are just aiming to be bought out by a bigger player.