Virgin and O2 are in detailed discussions. Here’s my 360 view on things.
Think back to November and we were speculating on the implications of the wholesale deal Virgin and Vodafone were progressing. It was going to change the market. Of that there was no doubt, and moreover, it was a very interesting way to forge a partnership that brought mutual benefits, and still swerve the regulatory and CMA review. But Friday’s news about a potential merger between Virgin and O2 completely changes the game and the market dynamics. Let’s look at the players: O2 - a problem child We know that Telefonica has been trying to work out what to do with O2 after the regulator and CMA blocked the merger with Three. As a by stander, I found it all rather perplexing because previously the regulator had waived through a deal between BT and EE creating a huge telecoms market leader. How was this different? One can only assume, that at the time, the regulator did not grasp the fact that fixed, mobile and media were all rapidly converging. So, O2’s needed to change tack, and as a result it’s been making some bold strategic moves. Only a month ago it pulled out of its partnership with the indirect reseller Carphone...
