BT takeover of EE

[Cleoriff]

Just in the news this morning. BT has been given clearance to takeover EE by the Competition and Markets Authority (CMA)

http://www.bbc.com/news/business-35320831

The CMA said it was unlikely to harm competition as BT was "smaller in mobile" and EE a "minor player" in broadband.

[Bambino]

A 'minor player' in broadband? What planet do these people live on? Maybe they mean mobile broadband, as according to this FT article, BT still holds an 80% share of home broadband connections. http://www.ft.com/cms/s/0/215cc6da-1b52-11e5-8201-cbdb03d71480.html#axzz3xIwCrtCs

The article you posted @Cleoriff does go on to say that because of this approval it sees the O2/Three merger going ahead as well, but I have my doubts.

[Cleoriff]

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@Bambino wrote:

A 'minor player' in broadband? What planet do these people live on? The article does go on to say that because of this approval it sees the O2/Three merger going ahead as well, but I have my doubts.

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35 million customers between them?... I confess to a limited understanding of these takeovers @Bambino but it seems rather weird that it has been given approval... though apparently could still be blocked as "Ofcom have yet to reach a decision on the shape of the whole UK telecomms market"

[Bambino]

Reducing the number of network providers isn't good for the consumer. Fewer choices and less competition will mean an increase in what we pay, no matter which way you look at it.

[PhoneChanger]

True, however they may have taken the view that BT Mobile is new to the market anyway (<12 months since launch) so will only have a limited number of customers.

In terms of Home Broadband, does EE have that many customers?

[jonsie]

I sincerely hope that this does lend argument to the Three/O2 merger. O2 are seriously in need of major investment and overhaul. Maybe there would be less competition in the mobile mrket but the same would apply should O2 merely disappear, it's a company in serious decline at the moment.

[viridis]

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@Bambino wrote:

The article you posted @Cleoriff does go on to say that because of this approval it sees the O2/Three merger going ahead as well, but I have my doubts.

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I actually see the exact reasons quoted as why they won't allow the merger of o2 and three.

O2 are huge in mobile and three are the largest in mobile broadband. Going by their logic, the merger would create a mobile superpower.

[Bambino]

I understand what you're saying @viridis, but the article @Cleoriff posted says, regarding the O2/Three merger: "it's hard to see why this deal would be blocked now that the BT/EE merger has gone through."

[viridis]

Because they chose to mention that they allowed it due to how "small" both of the parties are. Every time we hear rumblings about o2/three, all we hear is how "big" the final user base will be.
I just have a gut feeling they are gonna block it due to market share/ too big/ less competition..

[Bambino]

EE is considered small? They swallowed up T-Mobile and Orange. How is that small?

Personally, I hope the merger does get blocked. I'm on Three now (O2 P & G too) and their customer service and tariffs are very reasonable.