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BT files for competition approval of EE takeover
2015-05-18 19:52:00| Telecompaper Headlines
(Telecompaper) BT said it made its formal application to the UK's Competition and Markets Authority for approval of the proposed acquisition of EE from Orange and Deutsche Telekom. BT said the acquisition "will be good for competition, investment and innovation in the UK - and that consumers and businesses will benefit as a result". BT agreed in February to buy the UK's largest mobile operator for GBP 12.5 billion. Its re-entry on the mobile market is expected to support a new quad-play offering and strengthen its position among customers on the broadband and TV markets, allowing it to better compete with rivals Sky, Virgin Media and TalkTalk. While the acquisition will not change the number of mobile operators in the UK, regulatory approval may take longer than hoped due to the other pending acquisition in the UK market, of O2 UK by Hutchison Whampoa, owner of 3 UK. In addition, some industry players have raised concerns that BT's dominant position in the wholesale and retail broadband markets may be extended to impact the MVNOs on EE's network. BT said the ability of its landline and mobile rivals to compete with BT using its arms-length Openreach network will be unaffected by the acquisition. Furthermore its market shares in the broadband and mobile markets remain under the threshold that regulators normally look for before considering whether action is required. BT has asked the CMA to proceed directly to a phase 2 investigation into the proposed acquisition in order to speed up the process. The CMA confirmed the request, which would significantly shorten the usual 40-day phase 1 investigation. The regulator will confirm within about three weeks whether it will move directly to a Phase 2 inquiry. In the meantime, it opened a page on its website for industry comments on the proposed acquisition. BT reiterated its expectation that the regulatory process and the EE transaction should be completed by the end of March 2016.
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Category:Telecommunications