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BT’s acquisition of EE to boost UK consumer mobile plans

London - 5 February 2015

Telecoms group BT has bought the mobile operator EE for £12.5 billion. Peter Briggs, senior analyst at Current Analysis, comments on the implications of this acquisition for the operator's UK consumer plans.

Peter Briggs, Senior Analyst Consumer Services, Europe at Current Analysis, says:

"BT’s ‘build or buy’ studies and due diligence are over. The UK incumbent’s proposed GBP 12.5 billion acquisition of current mobile market leader EE, alongside its own lead in fixed residential services, will transform BT into a consumer quad-play provider able to focus on its TV challenger role."

"If approved and when completed, likely between Q3 2015 and Q1 2016, BT will bring the mobile network in-house, enhancing the operator’s initial return to consumer mobility based on an EE MVNO, augmented by small-cell LTE and WiFi. Ownership and control of a combined fixed and mobile network should then allow BT to develop more seamless and innovative data connectivity services for consumers, wherever they are."

"On completion, the acquisition will produce a very significant short-term consumer market impact by providing BT with a well-established 4G mobile network and customer base, alongside further opportunities for service integration and synergies that EE would have struggled to achieve alone."

"Both BT and EE consumer customers can expect a flurry of bundling, discounting and sharing deals to identify, retain and grow those BT/EE ‘customer households’. Rather than simplifying choice in the months ahead, UK consumers can expect a proliferation of quad-play offers."

"The two existing quad-play providers Virgin Media and TalkTalk will be joined by new players Sky (based on MVNO support from Telefónica) and Vodafone, as well as an invigorated mobile specialist formed by the possible Hutchison / Telefónica merger of Three UK and O2 UK, now the topic of ongoing exclusive discussions."

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Notes

BT acquired EE for £12.5 billion.

About Current Analysis

Current Analysis is a leading provider of market intelligence and advice that helps global IT and telecom professionals compete, innovate and improve performance. For over 15 years, their independent experts and proprietary services have empowered fast-paced companies to quickly identify opportunities to drive growth and market leadership. Relied upon as an unbiased and trusted partner. For more information, please visit our website or follow Current Analysis' twitter.

For more information

Please get in contact if you have any questions on this or any other Current Analysis insights. Analysts are available to comment. Contact Verena Niederacher at the Current Analysis press office on +44 (0) 207 936 6536 or email .

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