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

Join the Good Gear Guide newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags business issuestelecommunicationEECarriersBTmobileorangedeutsche telekomMergers and acquisitions

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Stephen Lawson

IDG News Service
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Matthew Stivala

HP OfficeJet 250 Mobile Printer

The HP OfficeJet 250 Mobile Printer is a great device that fits perfectly into my fast paced and mobile lifestyle. My first impression of the printer itself was how incredibly compact and sleek the device was.

Armand Abogado

HP OfficeJet 250 Mobile Printer

Wireless printing from my iPhone was also a handy feature, the whole experience was quick and seamless with no setup requirements - accessed through the default iOS printing menu options.

Azadeh Williams

HP OfficeJet Pro 8730

A smarter way to print for busy small business owners, combining speedy printing with scanning and copying, making it easier to produce high quality documents and images at a touch of a button.

Andrew Grant

HP OfficeJet Pro 8730

I've had a multifunction printer in the office going on 10 years now. It was a neat bit of kit back in the day -- print, copy, scan, fax -- when printing over WiFi felt a bit like magic. It’s seen better days though and an upgrade’s well overdue. This HP OfficeJet Pro 8730 looks like it ticks all the same boxes: print, copy, scan, and fax. (Really? Does anyone fax anything any more? I guess it's good to know the facility’s there, just in case.) Printing over WiFi is more-or- less standard these days.

Ed Dawson

HP OfficeJet Pro 8730

As a freelance writer who is always on the go, I like my technology to be both efficient and effective so I can do my job well. The HP OfficeJet Pro 8730 Inkjet Printer ticks all the boxes in terms of form factor, performance and user interface.

Michael Hargreaves

Windows 10 for Business / Dell XPS 13

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?