It was confirmed this week that BT is in early stage discussions to purchase a Telecoms operator – potentially either O2 or EE. If the industry commentators are right and the deal is as described then this confirms the view of the UK market as being led by the need for a Quadplay offer.
As I described previously, the uptake for Quadplay has been quite slow in the UK when compared to other markets, such as Germany, but the fact that BT is now in the market for a mobile business shows that they feel that need to improve their offer to both home and enterprise customers.
This indicates that they feel that Quadplay is a market development worth betting on. They spun off their mobile business several years ago and then chose to start focusing on content. It’s true that content is extremely important and their success with BT Sport has demonstrated that it is possible to put pressure on market leaders, such as Sky, but it now seems that having a mobile division could plug a missing link.
I expect that if this deal does go ahead, it will lead to further success for BT. We are seeing the importance of Quadplay in other European markets. The potential is there for this to also work well in the UK with BT being well positioned if they can effectively plug the gap in their service portfolio.
What do you think about the possibility of this deal? Leave a comment here or tweet me on @simondillsworth.
Photo by Taro Taylor licensed under Creative Commons