Fidest – Agenzia giornalistica/press agency

Quotidiano di informazione – Anno 32 n° 338

Expert comment on Three’s takeover of O2 being blocked by the EU

Posted by fidest press agency su giovedì, 12 maggio 2016

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John Colley, is a Professor of Practice in the Strategy and International Business group and researches large takeovers. He is also a former MD of a FTSE 100 company. Professor John Colley said: “It comes as little surprise that the EU competition authorities have said enough is enough on the rapid concentration of the UK mobile telecoms sector. “Following the merger of T-Mobile with Orange, subsequently purchased by BT, the industry was reduced to four players. The proposed merger of Three with O2 would have made it three players and the evidence from markets elsewhere shows that three players results in higher prices for consumers compared to four. In effect competition reduces and the consumer pays the price for that. “It is clear that the merger would have substantially reduced costs in requiring less shops, marketing, administration, head offices and there would have been benefits in terms of reduced network operating costs. However, the reduced competition would have meant that Three/O2 would not have to pass those savings on to the consumer.”

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