Menu
BT in talks to buy U.K. mobile carrier EE for US$19.5 billion

BT in talks to buy U.K. mobile carrier EE for US$19.5 billion

The deal would help BT sell bundled fixed and mobile services

BT Group has entered exclusive talks to buy U.K. mobile operator EE for 12.5 billion pounds (US$19.5 billion), a deal that would help the carrier offer bundles of mobile and fixed services.

The talks don't guarantee a deal will be reached, BT said in a press release on Monday. But they point toward BT choosing EE over O2, the mobile business it sold to Telefonica 10 years ago. BT and Telefonica had also been in talks last month.

EE was formed through the merger of the T-Mobile and Orange mobile businesses in the U.K. and is jointly owned by Orange and Deutsche Telekom. Under the terms of BT's proposed acquisition, Deutsche Telekom would own 12 percent of BT and have a seat on its board. Orange would own 4 percent of BT.

The acquisition would accelerate the sale of converged fixed-mobile services to BT's consumer and business subscribers and would help BT to sell fixed-line services to EE customers, the company said. BT already sells TV service in addition to broadband and fixed-line voice. While continuing the acquisition talks, BT said it will keep working on future converged services of its own and is confident it can deliver them even without buying EE.

As mobile, voice and cable TV providers face mounting competition from Internet services including WhatsApp, Skype and Netflix, service providers in Europe are using bundles to improve their revenue streams. These "quad-play" services include broadband, mobile, TV and voice for a single monthly fee. Both U.K.-based mobile carrier Vodafone and French cable operator Numericable recently have made acquisitions to create bundled products.

Stephen Lawson covers mobile, storage and networking technologies for The IDG News Service. Follow Stephen on Twitter at @sdlawsonmedia. Stephen's e-mail address is stephen_lawson@idg.com

Follow Us

Join the New Zealand Reseller News newsletter!

Error: Please check your email address.

Tags business issuestelecommunicationEECarriersBTmobileorangedeutsche telekomMergers and acquisitions

Slideshows

Top 50 defining moments of the New Zealand channel in 2016

Top 50 defining moments of the New Zealand channel in 2016

Reseller News looks back on a tumultuous 12 months for the New Zealand channel, assessing the fallout from a year of sizeable industry change. Whether it be local or global mergers and acquisitions, distribution deals or job changes, the channel that started the year differs somewhat to the one set to finish it - Reseller News assesses the key moments that made 2016.​

Top 50 defining moments of the New Zealand channel in 2016
​Hewlett Packard Enterprise honours high achieving NZ channel

​Hewlett Packard Enterprise honours high achieving NZ channel

Hewlett Packard Enterprise honoured its top performing Kiwi partners at the second running of its HPE Partner Awards in New Zealand, held at a glitzy ceremony in Auckland. Recognising excellence across eight categories - from distributors to resellers - the tech giant celebrated its first year as a standalone company, following its official split from HP in 2015.

​Hewlett Packard Enterprise honours high achieving NZ channel
Nutanix treats channel partners to Christmas cruise

Nutanix treats channel partners to Christmas cruise

Nutanix recently took to the seas for a Christmas Cruise around Sydney Harbour with its Australia and New Zealand staff, customers and partners to celebrate a stellar year for the vendor. With the sun out, they were all smiles and mingled over drinks and food.

Nutanix treats channel partners to Christmas cruise
Show Comments