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Introduction Tim O'Sullivan

Mobile

EE acquisition moves to next phase 

The Competition and Market Authority, which is currently clearing BT’s acquisition of mobile firm EE, has decided to move straight to the more detailed Phase 2 review of the proposed deal. This means any complex issues can be considered in depth without delay, offering a shorter end-to-end review period compared with the CMA’s usual processes.

We believe the acquisition will be positive for UK consumers and businesses as well as for competition, innovation and investment. The number of UK mobile network operators will remain at four and the ability of landline and mobile companies to compete with us using the Openreach network will be unaffected by the deal.

The acquisition will be positive for UK consumers and businesses as well as for competition, innovation and investment. The number of UK mobile network operators will remain at four and the ability of landline and mobile companies to compete with us using the Openreach network will be unaffected by the deal.

If the acquisition goes ahead, we will have market shares in the broadband and mobile markets under the threshold that regulators normally look for before considering whether action is required: BT has less than 1% of the mobile market, EE has 35%; BT has 32% of the broadband market and EE 3%, so the merged business will only have around a third of each market. But consumers will have more choice when it comes to fixed-mobile services and bundles comprising phone, mobile, TV and broadband. Our combined presence will lead to greater competition and better deals.

Due to our history as a natural and willing wholesaler, we already enable others to use the networks we own and we've provided wholesale access to companies in the broadband market. We will be happy to support others who wish to compete in the mobile market as well.

We expect that the CMA will conclude its investigation by the end of the financial year 2015/16.



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