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Thursday, February 5, 2015

BT agrees to buy EE for £12.5 billion

UK telecoms group BT and mobile network operator EE have agreed a takeover deal. It comes less than two months after the companies entered into exclusive negotiations with each other.

Orange and Deutsche Telekom, which run EE as a joint venture, have chosen to receive different benefits from the sale of their shares. Orange will receive around £3.4 billion and a 4% stake in the combined BT/EE business. Deutsche Telekom will have a 12% stake in the new business and will be entitled to appoint a non-executive board member.

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After four years, BT expects the combined business to be saving approximately £360 million per year.

The deal is subject to shareholder and regulatory approval, with a conclusion expected by March next year.

Gavin Patterson, BT’s Chief Executive, said “This is a major milestone for BT as it will allow us to accelerate our mobility plans and increase our investment in them. The UK’s leading 4G network will now dovetail with the UK’s biggest fibre network, helping to create the leading converged communications provider in the UK. Consumers and businesses will benefit from new products and services as well as from increased investment and innovation. The deal provides an attractive opportunity for BT to generate considerable value for shareholders, with significant operating and capital investment efficiencies supported by our tried and tested cost transformation activities. The enlarged BT will offer significant opportunities for employees as we lead the creation of a world-class digital infrastructure for Britain.”

EE was formed in 2010, after T-Mobile and Orange were merged. The company has about 13,000 employees, 580 retail stores and is responsible for more than 30 million mobile and fixed-line customers.

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Opinion Articles

RIM boss ignores the questions when asked about BlackBerry difficulties and competitors

What went wrong? What did you learn from the iPhone?

Mark Bridge writes:

Live TV and radio interviews. They can be worrying things, even when you’re not expecting to be challenged too much. I know this from experience. So when your company is launching a much-delayed operating system, you’d expect a few difficult questions… and you’d be ready with a response.

The official response of RIM is apparently to ignore the questions.

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Mobile phones transform lives in Africa

Jennifer Lazuta of voanews.com writes:

Rene Mendy, a street vendor in Dakar, has never had enough money to open a bank account. But now, thanks to an emerging mobile phone banking service, he has access to many financial services.

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Last week at The Fonecast: 28th January 2013

Figuring out the figures

Mark Bridge writes:

I didn’t study economics at college, which is probably one of the reasons I have a very simple perspective on quarterly results. As far as I’m concerned, they fall into one of three categories: much as expected, better than expected or worse than expected. Anyway, it’s the time of year when some of the biggest names in the mobile telecoms industry publish their financial results – so here we go.

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Bringing personalised radio to your smartphone

We interview Shankar Meembat about the UTuneMe radio app

Mark Bridge writes:

Targeted advertising on mobile devices is something we’re all getting increasingly familiar with. Visit a web site and there’s a good chance you’ll see an advertisement that’s aimed directly at you, perhaps using information about the sites you’ve previously visited, the type of smartphone you’re using or even your location.

Yet listen to the radio or stream music on your smartphone and that same level of personalisation hasn’t been aavailable. That’s all changing now, with help from a new service called UTuneMe.

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Why Huawei should get out of the mobile handset market

Why Huawei should get out of the mobile handset market

or why Huawei need to spend their £1.6 billion profit on marketing

James Rosewell writes:

Huawei is a company one can’t miss at Mobile World Congress. They bring their own building!  Plus last year a wonderful “Pegasus” flying horse sculpture made using Ascend handsets was proudly displayed next to the main fountain to hail the launch of the Ascend series of handsets.

Huawei has been busy following MWC12. They now run major parts of Everything Everywhere, Three and O2’s network in the UK. On a less positive note they’re not welcome in the US.

But how has the devices side of the business performed?

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