Home
 » ISP News » 
Sponsored

OFT to Rule on Sky Takeover of O2 UK Home Broadband in May 2013

Friday, April 19th, 2013 (10:13 am) - Score 2,608

The anticipated £180m+ acquisition by BSkyB (Sky Broadband) of O2 UK and BE Broadband’s fixed line internet and phone customers (full details), which was originally due to complete by the end of April 2013 (subject to regulatory clearance), could suffer a delay.

The Office of Fair Trading (OFT), which is currently examining whether the deal complies with the merger provisions of the Enterprise Act 2002 (i.e. a regulatory test to ensure that the deal doesn’t result in a “substantial lessening of competition“), has already closed the case to new responses and now appears to have set a later “expected decision” date of 16th May 2013 (estimated).

Sadly the OFT doesn’t guarantee that clearance will be announced on or before this estimated date, which is the regulators “best up-to-date estimate” of when a decision is expected to be announced.

This means that customers might have to wait a little bit longer to find out precisely what Sky has planned (i.e. product offers) because O2/Sky aren’t likely to confirm the final details until after the OFT has given clearance, although a source close to the proceedings confirmed that there’s no dependency on having OFT approval ahead of completing the transaction.

OFT Statement (March 2013)

The transaction involves the acquisition of the fixed home broadband and telephony buisness of Telefónica UK Limited under the Be and O2 Home Broadband brands.

The Office of Fair Trading is considering whether this agreement has resulted in the creation of a relevant merger situation under the merger provisions of the Enterprise Act 2002 and, if so, whether the creation of that situation has resulted, or may be expected to result, in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services.

So far we haven’t seen any significant reasons why the OFT might reject the BSkyB deal. The UK is already home to a fairly competitive consumer broadband market and the O2/Sky deal isn’t likely to have much of an impact on that one way or another.

Assuming the deal is given clearance then the phased migration over to Sky’s platform, which should take a total of around 18 months to complete, is expected to get underway towards the latter part of this summer 2013. Meanwhile O2, in an attempt to secure Sky’s “extra contingent amount” of up to £20 million, are continuing to offer customers who wish to leave plenty of incentives to stay (12 months free broadband and big mobile call rebates).

Credits to several of O2’s customers for pointing the OFT date out to us.

Share with Twitter
Share with Linkedin
Share with Facebook
Share with Reddit
Share with Pinterest
By Mark Jackson
Mark is a professional technology writer, IT consultant and computer engineer from Dorset (England), he also founded ISPreview in 1999 and enjoys analysing the latest telecoms and broadband developments. Find me on Twitter, , Facebook and Linkedin.
Leave a Comment
11 Responses

Comments are closed.

Comments RSS Feed

Javascript must be enabled to post (most browsers do this automatically)

Privacy Notice: Please note that news comments are anonymous, which means that we do NOT require you to enter any real personal details to post a message. By clicking to submit a post you agree to storing your comment content, display name, IP, email and / or website details in our database, for as long as the post remains live.

Only the submitted name and comment will be displayed in public, while the rest will be kept private (we will never share this outside of ISPreview, regardless of whether the data is real or fake). This comment system uses submitted IP, email and website address data to spot abuse and spammers. All data is transferred via an encrypted (https secure) session.

NOTE 1: Sometimes your comment might not appear immediately due to site cache (this is cleared every few hours) or it may be caught by automated moderation / anti-spam.

NOTE 2: Comments that break our rules, spam, troll or post via known fake IP/proxy servers may be blocked or removed.
Cheapest Ultrafast ISPs
  • Gigaclear £17.00
    Speed: 200Mbps, Unlimited
    Gift: None
  • Community Fibre £20.00
    Speed: 150Mbps, Unlimited
    Gift: None
  • Hyperoptic £22.00
    Speed: 158Mbps, Unlimited
    Gift: None
  • Virgin Media £24.00
    Speed: 108Mbps, Unlimited
    Gift: None
  • Vodafone £25.00
    Speed: 100Mbps, Unlimited
    Gift: None
Large Availability | View All
Cheapest Superfast ISPs
  • Hyperoptic £17.99
    Speed 33Mbps, Unlimited
    Gift: None
  • Shell Energy £19.99
    Speed 35Mbps, Unlimited
    Gift: None
  • NOW £20.00
    Speed 36Mbps, Unlimited
    Gift: None
  • Virgin Media £20.00
    Speed 54Mbps, Unlimited
    Gift: None
  • Vodafone £22.00
    Speed 38Mbps, Unlimited
    Gift: None
Large Availability | View All
The Top 20 Category Tags
  1. FTTP (4114)
  2. BT (3151)
  3. Politics (2117)
  4. Building Digital UK (2026)
  5. Openreach (1969)
  6. FTTC (1922)
  7. Business (1833)
  8. Mobile Broadband (1605)
  9. Statistics (1510)
  10. 4G (1378)
  11. FTTH (1371)
  12. Virgin Media (1277)
  13. Ofcom Regulation (1241)
  14. Fibre Optic (1234)
  15. Wireless Internet (1233)
  16. Vodafone (926)
  17. EE (905)
  18. 5G (898)
  19. TalkTalk (821)
  20. Sky Broadband (787)
Promotion
Helpful ISP Guides and Tips
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
Sponsored

Copyright © 1999 to Present - ISPreview.co.uk - All Rights Reserved - Terms , Privacy and Cookie Policy , Links , Website Rules , Contact