After months of deliberation, the Competition and Markets Authority (CMA) approved the £12.5bn BT acquisition of EE.
BT is the largest fixed broadband provider in the UK controlling over 31% of the market as well as 37.6% of home phone traffic. EE is the largest mobile network in the UK by revenue, controlling 33.8% of the market. Moreover, EE’s 4G network reaches around 75% of the UK population.
This merger will create a quad play giant which will encompass fixed line phones, broadband, mobile and TV services into one deal. It will add BT’s 10 million customers to EE’s 24.5 million direct mobile subscribers, making BT the largest provider in the UK and creating a company with significantly more combined broadband and mobile customers than any other in the UK.
So what will the deal really mean for consumers? What effect will it have on the wider market?
Gavin Patterson, BT’s Chief Executive, welcomed the merger saying: ‘The deal will create a UK digital champion, one that can help the country stay ahead of its peers … to deliver the UK’s connected future but also one that others can piggyback on if they don’t have the appetite to make the investments themselves.’
But how does this deal impact the world of Telco recruitment?
The effect that this merger, and the O2/Huchinson deal as and when that reaches approval stage, will have a tremendous effect on strategy recruitment within the Telco space. Notwithstanding the big shift in focus towards quad-play and OTT content, which in itself has generated a trend of hiring strategists coming from the media broadcasting and production space, these deals will most likely lead to a more operational influence in strategy recruitment.
Moving forwards, rather than hiring blue sky strategists straight out of consultancy, telcos will likely now look for individuals with exposure to post-merger integration and process improvement.
Alyce Perrott covers TMT Strategy positions across niche strategy boutiques, accounting firms and the leading strategy houses. She would be interested in speaking to you if you are looking to recruit for TMT roles or have consumer facing strategic experience focused on digital products and are keen to move into TMT. Please contact Alyce on email@example.com or +44 (0) 20 7194 7857.