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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

This week at The Fonecast: 9th July 2011

Mark Bridge writes:

Roaming charges are back in the news this week. Not the latest round of price cuts (or, to be technically correct, lower price caps) but the European Commission's plans for the future. As well as continuing the downward pricing trend for a few more years, Neelie Kroes also wants wholesale interconnection at capped rates and the option of a separate 'roaming contract' when you travel abroad.

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The changing face of app stores

Mark Bridge writes:

When applications first hit the headlines, there were many stories about developers making small fortunes just from selling applications. Now there’s much more focus on promoting the app.

To understand what's changed - and to discover how developers get their apps noticed inside ever-expanding app stores - I spoke to Carsten Frien. He's CEO & co-founder of mobile advertising marketplace madvertise, a company that's based in Germany and has recently opened an office in the UK.

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Recycling mobile phones from Africa to Europe

Mark Bridge writes:

Recycling an unwanted mobile phone makes sense. It's good for the environment and it generates cash as well.

Newer phones recycled in Western Europe are likely to be reconditioned and resold locally, while older models may be reconditioned for use in developing countries. Damaged phones are either used for spares or are broken down for the metals and minerals in their components.

But what happens when people in those developing countries need to recycle their phones?

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The story behind the Pizza Express iPhone app

Mark Bridge writes:

Recently Pizza Express introduced a new iPhone application that lets customers book a restaurant table and pay their bill. The app was developed by 2ergo, a UK company based in Manchester.

Last week I spoke to Colin McCaffery, Product and Technology Director at 2ergo, to find out how difficult it was to get the app and the restaurant's own technology working together.

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RIM denies fire but admits to presence of smoke

Mark Bridge writes:

Anonymous opinions about technology are all over the web... and they're not always pleasant. PC versus Mac. Apple versus Android. WiMAX vs LTE. Even a relatively light-hearted rant can be misinterpreted. Still, if some unknown voice is trying to irritate you, you just ignore them - right?

Wrong. Not if you're Research In Motion.

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