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France Telecom considering sale of EE
Friday 05 April 2013 17:21:09 by Andrew Ferguson

EE, previously known as Everything Everywhere, previously known as Orange and T-Mobile and for many parts of their operations still known as these later names may be about to undergo another round of change if information in the Financial Times is correct. The suggestion is that France Telecom and Deutsche Telekom may be looking to sell its stake or partially float EE.

Orange three years ago gave up running its LLU network, handing the fixed line operations over to BT Wholesale to run on their behalf, and since the launch of the EE 4G network and EE offering a FTTC service, the firm has had a growing base of fibre optic broadband customers, though we estimate the numbers are only around 10,000 to 20,000 customers. Though older ADSL2+ customers have not been happy over things like the withdrawal of free broadband for Orange mobile customers.

If the whole fixed and mobile broadband business is up for sale, and with Skys' recent acquisition of the O2/Be consumer base, maybe BSkyB might be tempted to acquire a complete mobile provider with millions of customers and add another few hundred thousand fixed line broadband customers to its portfolio.


Posted by XRaySpeX over 4 years ago
This article is pure speculation and can't read FT article as it is within a pay-wall.
Posted by andrew (Favicon staff member) over 4 years ago
The ft paywall has a free option that gives you 8 free articles per month.
Posted by pcoventry76 over 4 years ago
I'm glad my Ipad Sim with them is only 30 days commitment. But so far so good
Posted by Dixinormous over 4 years ago
Purchasing EE would be a quite scary proposition for Sky.

Sky are worth in total 14bln, EE would carry a price tag around 9bln.

It does make a lot of sense though. Sky's national fibre optic network would be very useful, and quadruple play would be a big deal.
Posted by mervl over 4 years ago
The FT quotes "inside sources" so I'm not sure where pure speculation comes from. Engaging in some myself nonetheless I'm not surprised if FT (other one) and DT want to concentrate on their home markets. EE needs to spend a lot on 4G; and the investment has to come from somewhere, nowadays seemingly often found in private equity or cash hoarding competitors. Trouble is that it might be the end of such a competitively priced mobile market but you get 'owt for nowt as gran used to say.
Posted by forsaken over 4 years ago
Sky wouldn't touch it I don't think. They haven't even setup a MVO and I would have expected them to make a 4G spectrum grab (I was keen to see if Virgin were going to do the same as they actually ran trials) for leverage.

They don't seem at all interested in mobile which will be interesting for them in the long term as landlines become less relevant. The Cloud IMO has OK coverage but they will need to still heavily expand on this going forward with more hotspots and prompt 802.11ac / ad upgrades as they standardise.
Posted by forsaken over 4 years ago
As for EE, they are likely just ramping up interest and will look for an investment injection. As it states in the articles they are growing (slowing in profit terms on a wholesale product) but its still a positive sign for them to pitch.
Posted by brucie245 over 4 years ago
Oh dear. Got out of be* just in time but the thought of my mobile contract hijacked by Murdoch makes me feel quite ill. With 18mths left on contract I'm stuck :( Let's just hope he doesn't get his filthy hands on EE!
Posted by ccxo over 4 years ago
@brucie245 News corp only owns 39% of BSkyB, their acquisutation for the final 61% failed and is unlikely to happen for a while.

Sky proably would have been better to acquire EE for the phone and broadband rather then O2/Be customers and network.
Will have to see if it does come to anything but mobile is the only offering sky is missing.
Posted by jimroy over 4 years ago
I'm with EE (Orange) mobile. We were one of the first areas to be switched on to 4G. Since Jan, I've noticed my signal at home to be appalling; No Service.It transpires that they've switched off a converged local (to my home) T-Mobile mast for cost savings proposes. When I queried the recent poor service with them they sent me a Signal Box/Femtocell to me FOC so I can make and receive calls and texts. I don't know what to think, except that their coverage and call quality has taken a nose dive lately. I live near the centre of the UK's 3rd largest city.
Posted by XRaySpeX over 4 years ago
@mervl: The pure speculation is this article, to which you commented, not the FT article, which I said I hadn't read.
Posted by Bob_s2 over 4 years ago
Sky may well show an interest in EE it would fit in well with their current strategy. Sky though would only be interested in the Fixed line Broadband and would dispose of the mobile side. That could fit in well with the way O2 are going

Sky are likely in the medium term to start to compete with BT with them looking to pilot an FTTP rollout in the not to distant future. Take up of ADSL & FTTC makes this a commercial possibility
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