r.jpg (Photo : Reuters)
British telecommunications giant BT Group is now going to acquire the United Kingdom's largest mobile network operator EE for 12.5 billion pounds, instead of internet service provider O2.
BT announced its confirmation today that it is already negotiating its acquisition of EE from U.K.'s Orange and German telecoms firm Deutsche Telekom. Once the deal is completed BT will be the owner of the largest mobile phone operator in the U.K. and will most likely garner more than 24 million mobile consumers.
According to BT, the period of exclusive talks will probably run weeks more, which will allow the telecoms giant to finish its negotiations on a "definitive agreement."
In addition, BT's acquisition of EE will boost its mobile strategy where its consumers will benefit from the combined power of 4G, WiFi and fibre broadband.
To date, EE has the biggest and broadest 4G network in U.K., BT would utilize it and would possibly rework its "Open Reach" option, a feature that makes BT routers to act as public WiFi hotspots.
Under the current terms, the buyout price would be 12.5 billion pounds on a debt and cash-free basis. After which, 12 percent worth of shares in BT would be given to Deutsche Telekom and will be given the power to appoint one board of director. A 4 percent stake would also be given to Orange.
According to CCS Insight industry analyst Kester Mann, other telecom giant competitors, including 3, Talk Talk, Virgin, Sky and Vodafone should be aware of BT's acquisition of EE as it could result in a lower market share for BT's competitors and that the BT could "assume" a "dominant position."
British telecommunications giant BT Group is now going to acquire the United Kingdom's largest mobile network operator EE for 12.5 billion pounds, instead of internet service provider O2.
BT announced its confirmation today that it is already negotiating its acquisition of EE from U.K.'s Orange and German telecoms firm Deutsche Telekom. Once the deal is completed BT will be the owner of the largest mobile phone operator in the U.K. and will most likely garner more than 24 million mobile consumers.
According to BT, the period of exclusive talks will probably run weeks more, which will allow the telecoms giant to finish its negotiations on a "definitive agreement."
In addition, BT's acquisition of EE will boost its mobile strategy where its consumers will benefit from the combined power of 4G, WiFi and fibre broadband.
To date, EE has the biggest and broadest 4G network in U.K., BT would utilize it and would possibly rework its "Open Reach" feature, a service that allows BT routers to act as public WiFi hotspots.
Under the current terms, the buyout price would be 12.5 billion pounds on a debt and cash-free basis. After which, 12 percent worth of shares in BT would be given to Deutsche Telekom and will be given the power to appoint one board of director. A 4 percent stake would also be given to Orange.
According to CCS Insight industry analyst Kester Mann, other telecom giant competitors, including 3, Talk Talk, Virgin, Sky and Vodafone should be aware of BT's acquisition of EE as it could result in a lower market share for BT's competitors and that the BT could "assume" a "dominant position."
British telecommunications giant BT Group is now going to acquire the United Kingdom's largest mobile network operator EE for 12.5 billion pounds, instead of internet service provider O2.
BT announced its confirmation today that it is already negotiating its acquisition of EE from U.K.'s Orange and German telecoms firm Deutsche Telekom. Once the deal is completed BT will be the owner of the largest mobile phone operator in the U.K. and will most likely garner more than 24 million mobile consumers.
According to BT, the period of exclusive talks will probably run weeks more, which will allow the telecoms giant to finish its negotiations on a "definitive agreement."
In addition, BT's acquisition of EE will boost its mobile strategy where its consumers will benefit from the combined power of 4G, WiFi and fibre broadband.
To date, EE has the biggest and broadest 4G network in U.K., BT would utilize it and would possibly rework its "Open Reach" service, which is a feature that makes BT routers act as public WiFi hotspots.
Under the current terms, the buyout price would be 12.5 billion pounds on a debt and cash-free basis. After which, 12 percent worth of shares in BT would be given to Deutsche Telekom and will be given the power to appoint one board of director. A 4 percent stake would also be given to Orange.
According to CCS Insight industry analyst Kester Mann, other telecom giant competitors, including 3, Talk Talk, Virgin, Sky and Vodafone should be aware of BT's acquisition of EE as it could result in a lower market share for BT's competitors and that the BT could "assume" a "dominant position."
