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[Black Sheep]

Just seen it on the news, as opposed to via one of BT's normal channels. EE purchased for 12.5 billion, in a 'Cash & Shares' deal.

[Black Sheep]

Ha ha ...... just been released on our BT channels.

BT agrees terms to acquire EE

Today starts a new chapter in the company’s history.
I’m delighted to announce BT has agreed terms to acquire EE, the leading mobile network operator in the UK.
The proposed deal allows BT to accelerate its own mobility strategy and to quickly meet the changing needs of our customers. It also allows us to offer a genuinely innovative and seamless service, bringing together our strength in fibre and wifi, with EE’s strength in 4G.
In addition, not only will consumers and businesses benefit from new products and services, it will offer significant opportunities for employees as we lead the creation of a world class digital infrastructure.
I’d like to reiterate that our Consumer mobile plans remain very much on track, so look out for details on this shortly.
The agreement is subject to approval by our shareholders and the UK’s Competition and Markets Authority (CMA). The CMA’s initial review is expected to take 8 weeks. If we gain CMA approval the deal will complete at the end of the first half of the 15/16 financial year. However, the CMA may feel a more detailed phase 2 review is needed, which is expected to take a further 24 weeks. If the deal is approved following this, it will be complete by the end of the 15/16 financial year.

[broadstairs]

Well I'm sure this will be controversial and from a personal perspective being an EE customer and never had a good experience in the past as a BT customer I am not looking forward to this going through. Sadly I entered a new contract last year with EE something I would not do now with this announcement.

Stuart

[WWWombat]

It didn't take long for Vodafone to call for BT to divest Openreach as a result of this.

I can see why they ask for that generally, but I don't for one second see why it should happen as a result of acquiring EE!

[Chrysalis]

I dont know what to think, this may pan out good, it may not.

I am a plusnet customer (owned by BT) and a EE customer.

Potentially BT may introduce some kind of quad play with plusnet using EE and I could see a price drop and/or a usage limit increase.

On the other hand BT may change EE policies to bleed the company dry so e.g. offshoring support, suspending investment in 4G capacity etc.

[sevenlayermuddle]

To be clear, the only parties who have agreed it are BT and EE.

It has yet to be approved by BT Shareholders, and yet to be approved by regulatory authorities, neither of which should be taken for granted...

[Black Sheep]

Absolutely 7LM ...... but I'll be a monkeys uncle if this hasn't already been sounded out 'behind closed doors' with the CMA, and the share-holders will share in the profits and unlikely to be in the majority with a 'No' vote ? 

[broadstairs]

I agree with Black Sheep, I think it is highly likely that this WILL happen. I cant see BT going for this without asking the relevant authorities before hand whether there is a good chance of it being allowed. Sadly from a personal perspective though and I will likely jump ship as soon as my contract ends if it does complete.

As I said earlier I have NEVER had a good experience being a BT customer.

Stuart

[kitz]

As I said earlier I have NEVER had a good experience being a BT customer.

On the plus side, I would imagine BT would be least likely to swallow it into their own system. With the likes of Sky*, TT and vodafone constantly demanding BT to be divested, then they may keep it as a separate or walled entity, just like they did with Plusnet.   Yet it would still allow them to cut some sort of quad play deal for their customers.

At the end of the day (and whilst I personally may not particularly like quad play) it does seem to be what the majority of consumers wants.  Give them a package with one bill and where they save a few pennies and they seem happy.   BT is a business and therefore they do need to keep on the ball and keep up with trending consumer demand.

[Chrysalis]

The sane thing to do is keep the EE brand, I dont know anyone who thinks EE is a bad company, but I know quite a few who hate BT for one reason or another.

[WWWombat]

Anyone see this as being helpful for 4G coverage of rural areas? As part of getting the basic broadband coverage for BDUK contracts?

BT could have marketed products for that with an MVNO, but when owning the company, I guess they have a little more say in where masts get sited.

[Mark07]

Potentially if BT can provide fibre the masts it could be done "in house" therefore cheaper and potentially quicker

Also maybe all EE customers will get access to BTWiFi / Openzone for free  Which would be quite good when paired with the wifi calling EE have meant to have been launching for the past 4 months or so 

[Chrysalis]

That free BT wifi I am in a city and I was the only transmitter of it in a 1 mile block.

When I mentioned on digitalspy that BT could use FTTC backhaul to bump up 4G/3G capacity, a few started saying that would be unfair to the other providers and ofcom could intervene which would seem harsh to me.

[WWWombat]

Also maybe all EE customers will get access to BTWiFi / Openzone for free  Which would be quite good when paired with the wifi calling EE have meant to have been launching for the past 4 months or so 

Somewhere deep down in this presentation, BT seem to like the idea of handing off data to WiFi. They include the idea of a mobile having a dual data attachment; one a robust connection using (eg) LTE on licenced spectrum; the other more ad-hoc, for opportunistic use when possible. WiFi was in the list, alongside LTE in unlicensed space.

[WWWombat]

When I mentioned on digitalspy that BT could use FTTC backhaul to bump up 4G/3G capacity, a few started saying that would be unfair to the other providers and ofcom could intervene which would seem harsh to me.

It is harsh in one sense - because any operator could purchase backhaul from Openreach on an EoI basic. Perfectly fair.

The unfair part might appear if/when Openreach chose FTTC sites because they happen to be able to support one of their 3G/4G masts, when they wouldn't take into account a competitor's mast.