After months of negotiations, it is finally official that BT will be purchasing EE for a hefty £12.5billion, connecting the UK’s leading 4G network with one of the biggest fibre networks. With hopes to provide a ‘seamless’ service, BT will be heading their way back into the mobile network market after selling O2 to Telefonica back in 2005 with the intention of paying closer attention to fixing line and broadband issues. But 10 years later, what can we expect?
Well for a start, the buyout isn’t expecting to take effect until March 2016 following a regulatory review that they hope will be approved. The agreement so far between EE and BT is that Orange will receive a 4% share of stakes in BT plus £3.4billion in cash, with Deutsche Telekom(T-Mobile) receiving a 12% stake with a seat on the board.
Despite the excitement expressed by BT and EE, the customers of the leading 4G company aren’t seeming so enthralled, with threats of leaving to use services elsewhere upon the finalisation of BT taking over. Existing EE customers have raised concerns over BT customer support and terrible customer service in general, however the new database of over 7.7million subscribers means BT really will need to tie up all the stray ends if they are wanting to make a positive impression on their soon-to-be customers.
The takeover is expected to save £360million a year in operating costs for the next 4 years, with £1.6billion in increased sales each year. £1billion in new shares are also hoping to be created. It’s not just BT that are expected to benefit. Consumers and businesses are expected to benefit from potential new products and services that develop as BT delve further into the takeover with an increase in investment and innovation.