Liberty Global in talks to merge Virgin Media with O2

[Horizon]

Originally Posted by Kushan

I'm normally all for competition in the marketplace but with the physical limitations of mobile spectrum, there is definitely a case for keeping that competition to a fixed limit. More than 2 for sure, but probably less than 5. 3 or 4 is trickier to determine. Right now we don't seem to have serious capacity issues thanks to the 5G rollout, but in future that might change.

Three have loaded up big on the 5G spectrum, I suspect they've put the big bet on Fixed wireless internet for their future.

If that pays off, I doubt they care much for Vodafone, but if it doesn't then I suspect Three will be gobbled up by someone eventually. I'd say TalkTalk is a good shout but I'm not sure how much life TalkTalk has left in it. Three and Sky/Comcast, maybe?

TalkTalk will eventually get squeezed out of the market by those able to offer faster broadband on their own networks at a cheaper cost than TalkTalk can rent space, so in that sense, I agree. But they have that ready made database of millions of customers and it's much easier and cheaper in the long run for someone to purchase that, than go out and hustle for new custom.

On number of mobile cos, I would prefer 4, but I suspect like most of Europe and now the States, it will end up as only three networks.

[pip08456]

Originally Posted by Horizon

On number of mobile cos, I would prefer 4, but I suspect like most of Europe and now the States, it will end up as only three networks.

That's good because I'm with Smarty and that uses three's network.

[Pierre]

It’s not a merger, it’s a Joint Venture, which is a subtle but important difference.

[Ken W]

Originally Posted by Pierre

It’s not a merger, it’s a Joint Venture, which is a subtle but important difference.

Dose that mean Virgin Mobile will use 02 instead of EE in future?

[pip08456]

Originally Posted by Ken W

Dose that mean Virgin Mobile will use 02 instead of EE in future?

Yes, the EE deal was due to finish soon anyway. If the O2 deal doesn't go through Virgin Mobile will use Vodaphone.

[japitts]

Originally Posted by pip08456

Yes, the EE deal was due to finish soon anyway. If the O2 deal doesn't go through Virgin Mobile will use Vodaphone.

VodaFone I think you'll find, although I admit Vodaphone seems quite a popular name sometimes

I don't think Virgin will be the only MVNO to be changing host network over the next couple of years, somehow.

[denphone]

Vodafone's chief executive today declared he would stick to his current strategy as a standalone mobile player despite last week's mega merger between O2 and Virgin Media.

https://www.standard.co.uk/business/...-a4436706.html

https://www.theguardian.com/business...08a55ecde58541

Nick Read, the chief executive of Vodafone, said that the company would not look to disrupt the deal between Telefonica and Liberty Global, which will create a joint venture to challenge BT and Sky in the UK.

[JMcB]

So as a Virgin media customer with BB,TV,Land line and mobile. What's in it for me in regards to this marger

[pip08456]

Originally Posted by JMcB

So as a Virgin media customer with BB,TV,Land line and mobile. What's in it for me in regards to this marger

Nothing.

Originally Posted by JMcB

So as a Virgin media customer with BB,TV,Land line and mobile. What's in it for me in regards to this marger

Possibilities

https://www.bloomberg.com/news/artic...pact-consumers

O2 is a pure-play wireless carrier with no TV product of its own, so it bundles services like Amazon Prime Video into new contracts. Conversely, Virgin Media gives its TV subscribers free mobile apps that let them stream live and on-demand channels, but incentives to use them on a Virgin Mobile service -- such as having their data usage being excluded from a customer’s monthly allowance -- don’t exist.

There would be ample opportunity for Virgin to offer an on-demand TV streaming mobile product that, if used on an O2 phone, didn’t eat into a customer’s data allowance. It’s a strategy already used by rival EE -- customers of that carrier can choose a service plan that excludes TV services such as the BBC and Netflix Inc. from using up bundled data allowances.

Swathes of British households don’t currently get their mobile phone from the same provider as their TV or broadband, which is often the best way to get the cheapest deals, so it opens up an opportunity for cost-savings (for consumers) and market growth (for providers).

[Kushan]

I suspect consumers on either side won't really benefit from this, more it might just mean 12 months without a price rise (or a smaller price rise) instead of the usual 6-8 it seems to be.

[1andrew1]

As some on the forum predicted, Vodafone has said it won't make a counter-offer for Virgin Media.
https://www.standard.co.uk/business/...-a4436706.html

[carravetta]

Could this see a merger between Sky and Three (Hutchinson) or Comcast buying them in the future?

[1andrew1]

Originally Posted by carravetta

Could this see a merger between Sky and Three (Hutchinson) or Comcast buying them in the future?

Nothing should be ruled out but 3 seems to be more of an acquirer than a seller. In 2013, 3 announced its intentions to acquire O2 Ireland and it was successful in doing so. But in 2015, 3 tried to acquire O2 UK but was blocked by the EU on competition grounds.
Whilst a merger with TalkTalk might make sense - both have a value focus - 3 does not have a fixed line presence in the other countries it operates in.

[carravetta]

Originally Posted by 1andrew1

Nothing should be ruled out but 3 seems to be more of an acquirer than a seller. In 2013, 3 announced its intentions to acquire O2 Ireland and it was successful in doing so. But in 2015, 3 tried to acquire O2 UK but was blocked by the EU on competition grounds.
Whilst a merger with TalkTalk might make sense - both have a value focus - 3 does not have a fixed line presence in the other countries it operates in.

Interesting

Reason I mentioned Sky is they were looking to buy Hutchinson back in 2014 before focusing on buying Sky Italia and Sky Deutschland instead.

As for Talk Talk I’m surprised they are still operating in this aggressive market, maybe a merger could be a good thing for them.