Quote:
Originally Posted by Pierre
VMO2 is not part of Nexfibre.
I think there is a general misunderstanding of the VMO2 / Nexfibre relationship.
VMO2 and Nexfibre are part of the same group, and have the same parent companies LG & Telefonica (Except Nexfibre also have Infravia), but they are not the same company.
It is not VMO2 buying Netomnia it is Nexfibre
VMO2 build and maintain the Nexfibre network, and VMO2 are a wholesale customer on it, but they don't own it.
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I think we need to get round this, because in effect this is separation only exists for regulatory reasons.
For example I could setup a retailer, and a wholesaler as two separate companies, on paper they are fully independent from each other, but it would be nonsense to claim they are independent when I own both companies.
Liberty global who own Virgin Media are a shareholder of Nexfibre, so lets stop the pretence there is no shared ownership. This is a structure for accounting and regulatory benefits. Telefonica are also a shareholder. The CMA rightly so have seen through it.
Its hard to have a rational discussion on here, as the forum is filled with VM affiliates.
But my view is this, if we have already decided politically VM should be able to do a hostile take over, then we may as well have no CMA, the CMA exists to protect against these sort of events.
The argument seems to be that we should have no alt nets moving forward, they have no business setting up in this country, they will be gone in X amount of years.
My counter to that is, the CMA should make a decision based on whether they think the merger would create significant market power and hurt competition.
But apparently the CMA instead should be considering the health of Virgin Media, and whether they think Netomnia will survive if the merger is declined, yet Netomnia is more financially healthy than VMO2.
The only time that VMO2 should perhaps get "assistance" in gaining control of the Netomnia, is if the company is indeed about to get liquidated, and there is simply no other options on the table, then the likes of me would support it. Until that day comes then patience is required.
As an example this is a reasonably accurate headline to state VMO2's owners are doing the acquisition rather than Nexfibre is doing the acquisition..
https://www.ft.com/content/cb3ffce2-...syn-25a6b1a6=1
So whether VMO2 own the infrastructure or Nexfibre, is moot, as the same companies own it regardless.
---------- Post added at 22:44 ---------- Previous post was at 22:29 ----------
Quote:
Originally Posted by jfman
The point is the CMA are proposing to interfere in a market that’s already regulated. The regulation of it is based upon assumptions and aspiration to develop a competitive market that can’t (and won’t) develop without interference.
The wrong call here could sink the aspiration of 90% of the country having a choice of two or more network operators. Handing Substantial to CityFibre also signals that Britain is a bad place to invest - the regulator will limit buyers for your assets if it doesn’t meet their back of a cigarette paper assumptions.
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The need to flip for inflated profit is more important than a healthier market?
CityFibre are also an investor.
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