UK NEWS
BT AGREES £400M TALKТALK TAKEOVER, SAVING 900 JOBS
BT has agreed to acquire broadband provider TalkTalk and its wholesale arm, PlatformX Communications, in a £400 million deal aimed at rescuing the com...
By Wavers News
BT agrees £400m deal to acquire TalkTalk
The agreement will also bring roughly 1.5 million additional UK retail broadband customers into BT’s customer base, although the transaction must undergo regulatory scrutiny before it can be completed.
DEAL TRIGGERS COMPETITION REVIEW
The UK Competition and Markets Authority is expected to examine the acquisition because of BT’s already significant position in the broadband market.
BT is the country’s largest broadband provider, with an estimated market share of about 30%. TalkTalk is the UK’s fourth-largest broadband company.
The government has also intervened in the transaction. Digital, Culture, Media and Sport Secretary Lisa Nandy issued a public interest intervention notice, saying the impact on public health, critical national infrastructure and vulnerable customers should be considered.
VULNERABLE CUSTOMERS AMONG CONCERNS
TalkTalk has about 250,000 vulnerable customers, including elderly and disabled people who rely on telecare devices connected to the older copper telephone network.
The government is particularly concerned about the continuity of services for these customers as the acquisition goes through.
TalkTalk’s wholesale business also serves around one million customers, including organisations operating in areas such as healthcare, emergency services, defence, education, transport, banking and government.
VIRGIN MEDIA O2 OBJECTS
Virgin Media O2, which had also considered buying TalkTalk, criticised the agreement and described it as a move that could further strengthen BT’s position in the broadband market.
The company said it would raise its concerns with the government and regulators.
BT, meanwhile, said it expected to incur a £400 million cash impact from the acquisition in its current financial year.
The company said its immediate priority would be stabilising TalkTalk and protecting the households and businesses that depend on its services.