O2 and Virgin Media consider merging to fight BT and Sky

O2 and Virgin Media consider merging to fight BT and Sky
Ryan is a senior editor at TechForge Media with over a decade of experience covering the latest technology and interviewing leading industry figures. He can often be sighted at tech conferences with a strong coffee in one hand and a laptop in the other. If it's geeky, he’s probably into it. Find him on Twitter: @Gadget_Ry

Two of the UK’s biggest names in telecoms are considering a merger to combat the industry behemoths of BT and Sky.

O2 and Virgin Media are reportedly in talks to combine each company’s strengths across TV, broadband, and mobile.

Liberty Global, which owns Virgin Media, is said to be in talks with Spanish O2-owner Telefonica. Virgin Media brings a vast TV and broadband presence to the table, while O2 has a much larger base of mobile subscribers. 

Virgin Media currently operates as an MVNO using EE’s network, but is currently due to switch to using Vodafone’s network in late 2021.

The merger, if talks succeed and it passes regulators, would create a new power player that’s more competitive against the existing market leaders.

O2 has sought a merger for quite some time. A £10.25bn bid by Three UK, which would have made the combined mobile giants more competitive against EE and Vodafone, was blocked in 2016 by the European Commission. The commission decided to take control of the inquiry, overruling a request from Britain’s Competition and Markets Authority to decide.

Analysts don’t believe a prospective merger deal between O2 and Virgin Media will face the same problems as the former did with Three.

Interested in hearing industry leaders discuss subjects like this? Attend the co-located 5G Expo, IoT Tech Expo, Blockchain Expo, AI & Big Data Expo, and Cyber Security & Cloud Expo World Series with upcoming events in Silicon Valley, London, and Amsterdam.

Tags: , , , , , , ,

View Comments
Leave a comment

Leave a Reply

Your email address will not be published.