The Competition and Markets Authority provisionally clear EE takeover by BT

Wednesday 28th of October 2015 in Telecoms, Mobiles by Kerry Owston

The BT Group have had their takeover of mobile phone network EE cleared by the Competition and Markets authority (CMA).

The CMA said the £12.5bn deal, first announced in February, was "not expected to result in a substantial lessening of competition" in the UK".

This Takeover will set BT to cover fixed line phones, broadband mobile and TV and will more than treble the communication giants retail customers.

BT Group takeover EE

The CMA have said that the two firms are operating in separate areas with BT having strengths in fixed communication services like voice and broadband while EE have their strengths in mobile communication services. The overlap between the two providers is limited.

John Wotton, chair of the CMA inquiry said: "Having considered all the evidence, the group does not provisionally believe that, in a dynamic and evolving sector, it is more likely than not that BT/EE will be able to use its position to damage competition or the interests of consumers."

The BT chief executive Gavin Patterson is positive about the takeover saying "The combined BT and EE will be good for the UK, providing investment and ensuring consumers and businesses can benefit from further innovation in a highly competitive market".

BT may still need to break up it’s broadband services

BT rivals Talk Talk and Vodaphone say that regulators should force BT to spin off their Openreach Internet broadband businesses to improve competition and provide a better service, this means that Ofcom may still be forced to break up BT’s Openreach service.

The CMA have said "We are aware of concerns voiced recently about Openreach and wider concerns are currently being considered by Ofcom in their review of the whole telecommunications market."

The CMA will publish a final report in January after responses to it’s provisional report.



 


 


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