UK's competition watchdog gives £31bn Virgin Media and O2 merger the seal of approval
- Reference: 1621510580
- News link: https://www.theregister.co.uk/2021/05/20/virgin_o2_merger_approved/
- Source link:
In [2]its final report on the proposed alliance [PDF], the CMA said the combined entity would not be able (or wasn't incentivised) to disrupt the market for mobile backhaul or MVNOs meaningfully.
Virgin Media offers backhaul services – the fixed lines that connect mobile antennas to the core network – to various UK networks, namely Three, Vodafone, and Mobile Broadband Network Limited (MBNL, which is co-owned by O2 and Three).
[3]
[4]
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The CMA found that its existing contractual obligations would mean that, in the short-to-medium term, Virgin Media would be unable to degrade or withdraw the services it provides to rivals.
[6]UK's competition watchdog sniffs around AMD's proposed $35bn all-stock buy of Xilinx
[7]10.8 million UK homes now have access to gigabit-capable broadband, with much of the legwork done by Virgin Media
[8]Broadband plumber Openreach yanks legacy copper phone lines in Suffolk town of Mildenhall en route to getting the UK on VoIP
Moreover, Virgin Media is a relative minnow in the backhaul space, and other providers (most notably Openreach, but also the new altnets) would be able to pick up the slack. It also found that backhaul represents a relatively small proportion of the cost of delivering mobile services, and thus any chicanery would result in minimal cost increases for customers.
The report also claimed that the proposed merger would have a minimal impact on MVNOs. O2 presently offers wholesale services to four named providers – Sky Mobile, Lycamobile, Manx Telecom, and Truphone.
Wholesale costs account for a small proportion of the retail cost of an MVNO mobile bundle, thus limiting the ability of the combined entity to distort the market. The CMA also pointed to the healthy competition in the carrier market, giving MVNOs an option to move to alternative providers.
Liberty Global and Telefónica, the respective owners of Virgin Media and O2, [9]welcomed today's news .
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In a jointly released statement, Mike Fries, CEO of Liberty Global, and José Maria Alvarez-Pallete, CEO of Telefónica, said: "This is a watershed moment in the history of telecommunications in the UK as we are now cleared to bring real choice where it hasn't existed before, while investing in fibre and 5G that the UK needs to thrive."
The combined entity will create a new company with products spanning fixed-line broadband, mobile, and paid TV. So far, the only outfit with fingers in all pies is BT, which also owns the EE mobile network.
Lutz Schüler, currently CEO of Virgin Media, will head the new business. Patricia Cobian, O2's CFO, will also assume a leadership role in the venture.
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Mark Evans, O2's CEO, has not been provided a formal leadership role and is expected to depart following the conclusion of the merger. Brendan O'Reilly, O2's CTO, is [12]moving to Canadian infrastructure outfit BAI Communications as its CTO . ®
Get our [13]Tech Resources
[1] https://www.theregister.com/2020/05/04/o2_virgin_media/
[2] https://assets.publishing.service.gov.uk/media/60a55ec58fa8f520c5e44021/Virgin_O2_-_Final_Report.pdf
[3] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/networks&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2YKaHmuOHljglPhsQYip3NAAAABY&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/networks&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44YKaHmuOHljglPhsQYip3NAAAABY&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[5] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/networks&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33YKaHmuOHljglPhsQYip3NAAAABY&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[6] https://www.theregister.com/2021/05/10/amd_xilinx_buy_cma/
[7] https://www.theregister.com/2021/05/14/108m_uk_homes_gigabit_capable/
[8] https://www.theregister.com/2021/05/07/openreach_mildenhall_copper/
[9] https://www.businesswire.com/news/home/20210519006035/en/Liberty-Global-and-Telefonica-Welcome-Final-UK-Regulatory-Approval-for-Virgin-Media-O2-Joint-Venture
[10] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/networks&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44YKaHmuOHljglPhsQYip3NAAAABY&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[11] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/networks&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33YKaHmuOHljglPhsQYip3NAAAABY&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[12] https://www.capacitymedia.com/articles/3827451/metro-wireless-network-company-hires-o2s-cto-to-lead-5g-expansion
[13] https://whitepapers.theregister.com/
Re: Yeah Virgin customer service!
So what was the problem?
Re: Yeah Virgin customer service!
Sorry dude, but you are ringing someone who has a script. Just play along. When my cable box broke (a capacitor went bang when I switched it on):
Can you turn it off, wait 10s, and turn it on again?
OK... 1, 2, 3, 4, 5, 6, 7, 8, 9, 10... OK, I've turned it on... Still no lights.
Thankyou. I will need to arrange a visit from one of our engineers [rest of conversation snipped]
"David" or "Sharon" have a script. They are paid to follow the script. They aren't allowed to deviate. Just (pretend to) follow their instructions, give the right responses, and the script will lead them along to the outcome you want. Me arguing with them that the power supply was faulty would just have wasted my time, and theirs.
If you want properly bad customer service, try one of the (increasing number of) companies who don't even have a customer helpline. Got a problem? Scream on social media. No social media presence? Sucks to be you.
Re: Yeah Virgin customer service!
Only problem is when they have one script that is also the wrong script.
One of my first ADSL providers was a reseller, I used it with a router and one day it stopped working. The person on the phone had a script for a USB modem and couldn't respond to me going I don't have a USB modem I have a Router. After 30 minutes of getting no-where and trying to follow the script with the usual I don't have a USB ADSL Modem I can't create the connection that way I slammed the phone down. Phoned back that's when I realised it was a one man band outsourced helpline even back then.
As I worked for an ISP helpline at the time I thought I'll call next day, but first I put my number into the ADSL checker and that's when I discovered the problem was they had disconnected me. Phoned and got the same crap, asked for supervisor and apparently there wasn't one. Thought screw it signed up where I work, cancelled the direct debit and that's when someone called and asked why I had cancelled the direct debit. They threatened to disconnect me straight away, I obviously responded that they had already disconnected me which is why they were getting no more money from me.
Re: Yeah Virgin customer service!
Spot on. And equally, it doesn't makes sense for Dave to be trained and paid to be intelligent enough to deviate from the script and actually resolve these sorts of problems, otherwise you've got a bunch of highly paid and technically astute people answering calls that for the vast majority will be "have you tried turning it off and on again".
Dave is the guardian of the real engineer. He's deflecting the hours of pointless calls.
Similarly on the "I don't have a USB modem". Just pretend you do and give the answers they're expecting to unlock the real engineer.
Re: Yeah Virgin customer service!
Script or not ringing Customer service / tech support always results turn it off turn it on. Even at work where the engineers who are in the same building and know their stuff, turn it off turn it on. So whats the point of arguing the time it takes is no more than a minute. You will waste more time arguing the toss.
Couple of months ago my Virgin Tivo stopped working. Customer service turn off and on they can't connect send out a new box. That's the script.
MVNOs
What are MVNOs? The article doesn't say.
Perhaps it is Mergin' Vidia Network (O2)?
Re: MVNOs
Mobile Virtual Network Operators, i.e. companies that sell mobile services but use a physical Network Operator to provide the actual connections.
Re: MVNOs
Virgin Mobile is the MVNO
O2 is the carrier
Re: MVNOs
Tesco Mobile is a good example. Obviously Tesco can't be arsed building and supporting a mobile network, so Tesco Mobile is just O2 with a Tesco label on the front.
(or 3 with a Tesco label if you're in Ireland IIRC)
OxyGin?
Bluesky creatives are thoughtstorming the new branding even as I type.
And... then there were four no, three, no two,... one
The phone/cable companies get bigger and bigger.
We continue to get shafted with piss poor service, multiple price rises every year and crap speeds even on Vermin.
The 'C' level execs meanwhile play merry-go-round between the remaining players getting fatter and fatter on our money.
Situation normal then.
Re: And... then there were four no, three, no two,... one
But, but... 5G is going to be The Solution Of All Evils isn't it?
Chicanery
> It also found that backhaul represents a relatively small proportion of the cost of delivering mobile services, and thus any chicanery would result in minimal cost increases for customers.
I'm more worried (as an O2 subscriber) about now being bilked to pay the interest on Liberty Global's massive debts. Thanks very much CMA.
CMA Bastards
They won't allow the merger of Crowdcube and Seedrs but this anti-competitive deal is fine.
It's not what you know...
NTL were the worst.
Virgin Media are still NTL under it all, and now O2 will be part of that great tradition of monumentally (rap customer service, mid fixed contract price rises, and out right theft (continuing to debit after the contract was terminated).
Too confusing
I used to be on BT Cellnet years ago with work. On BT at home.
BT offered me a mobile phone contract.
"I have work one already with you with O2, used to be BT Cellnet."
It confused them.
But confuses me anyway.
You must be young. It started as Telecom Securicor Cellnet.
Yeah Virgin customer service!
Ring Ring (repeat for 20 minutes).
Hello my name is David (it clearly isn't), how may I help you.
I can't get a signal on my phone. I can't make or receive calls or texts. Its OK on WiFi, so I can get Internet. I've rebooted it and took the sum in and out.
No problem can you restart the phone.
I've done that several times
I need you to reboot the phone please.
Still nothing.
OK I noticed you said your WiFi isn't working.
No it's OK on WiFi.
OK can you reboot your router?
Why?
I need you to reboot your router.
/repeat crap like this until you give up and get a new carrier.