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 newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags mobileMergers and acquisitionsbusiness issuestelecommunicationBTdeutsche telekomorangeCarriersEE

Featured

Slideshows

Reseller News kicks off awards season in 2019 with Judges' Lunch

Reseller News kicks off awards season in 2019 with Judges' Lunch

The 2019 Reseller News Innovation Awards has kicked off with the Judges Lunch in Auckland with 70 judges in the voting panel. The awards will reflect the changing dynamics of the channel, recognising excellence across customer value and innovation - spanning start-ups, partners, distributors and vendors. Photos by Christine Wong.

Reseller News kicks off awards season in 2019 with Judges' Lunch
Reseller News welcomes industry figures for 2019 Hall of Fame lunch

Reseller News welcomes industry figures for 2019 Hall of Fame lunch

Reseller News welcomed 2018 inductees - Chris Simpson, Kendra Ross and Phill Patton - to the third running of the Reseller News Hall of Fame lunch, held at the French Cafe in Auckland. The inductees discussed the changing landscape of the technology industry in New Zealand, while outlining ways to attract a new breed of players to the ecosystem. Photos by Gino Demeer.

Reseller News welcomes industry figures for 2019 Hall of Fame lunch
Upcoming tech talent share insights at inaugural Emerging Leaders Forum 2019

Upcoming tech talent share insights at inaugural Emerging Leaders Forum 2019

The channel came together for the inaugural Reseller News Emerging Leaders Forum in New Zealand, created to provide a program that identifies, educates and showcases the upcoming talent of the ICT industry. Hosted as a half day event, attendees heard from industry champions as keynoters and panelists talked about future opportunities and leadership paths and joined mentoring sessions with members of the ICT industry Hall of Fame. The forum concluded with 30 Under 30 Tech Awards across areas of Sales, Entrepreneur, Marketing, Management, Technical and Human Resources. Photos by Gino Demeer.

Upcoming tech talent share insights at inaugural Emerging Leaders Forum 2019
Show Comments