Broadband News

NTL and Telewest merger nears

Reuters are reporting that a deal could be set by tomorrow to confirm the merger of NTL and Telewest, including Flextech, Telwest's digital TV business which involves channels such as Bravo, LivingTV, and a 50% share in UKTV (a joint venture with BBC Worldwide). Telewest were originally auctioning Flextech, and bidders included BSkyB, and RTL (a European broadcaster) but halted the process to investigate further a merger with NTL that is set to bring greater competition and bargaining power against the giant BSkyB.

BT may also see increased competition from a dominant cable operator with a network capable of competing across a much larger area and offering more services to the consumer. Whether this merger is likely to invoke Ofcom into action is yet to be seen.


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