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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

Operation Mobile as military prepares to synchronise with smartphones

How Mobile Apps are changing the way the military operates in the field

Kevin Deal, Vice President of Aerospace & Defence at IFS North America, writes:

It is difficult to believe that the idea of a hand-held mobile phone was an alien concept only a few short decades ago. From brick-sized analogue devices to wafer thin smartphones with processing capabilities comparable to those of laptops, new technology is constantly pushing the boundaries of what we can expect from our phones. And, in a reverse of the normal pattern of technology innovation, a development driven by consumers is set to have an important impact on aerospace and defence (A&D).

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Last week at The Fonecast: 19th November 2012

Confusion by numbers

Mark Bridge writes:

The last few days have been particularly busy for UK telecoms regulator Ofcom. It started the week by announcing its rules for next year’s UK 4G mobile spectrum auction – expect services to go live in around six months – and it ended the week with plans to avoid a 5G capacity crunch.

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Consumer privacy, opt-in marketing and the future of mobile

We talk to Henry Lawson of nFluence media

Mark Bridge writes:

Today’s consumers receive a seemingly never-ending stream of online information from their social networks, from websites, in their email and on their mobile devices. But is there a way to let individuals stay in control whilst also helping companies advertise their products?  According to nFluence Media, there definitely is.

To find out more, I spoke to Henry Lawson, co-founder and CEO of nFluence, and started by asking him to explain exactly what nFluence did.

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Doro aims at the sweet spot for easy-to-use mobile phones

Mark Bridge writes:

Here’s a statement that’ll come as no surprise to anyone who works in the UK mobile industry.

For many people, their mobile phone isn’t just a communication device. It’s a personal statement.

Of course it is. Why else can you buy a gold-plated iPhone, a diamante-encrusted Blackberry or a Samsung Galaxy SIII in colours “inspired by the Earth’s richest materials”?

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Ofcom asks "Which type of communicator are you?"

New analysis of the UK’s communication habits has found that people can be categorised into five different groups of communicators, ranging from the ‘always on’ to the ‘detached’.

Earlier this year, Ofcom’s Communication Market Report revealed that the UK is now texting more that talking. Further analysis of the research, published today, looks at the methods and frequency of communication, as well people’s attitudes towards it.

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