ntl:Telewest combine with Virgin
The time for talking and hard negotiating is over, and ntl:Telewest has reached an agreement with Virgin Mobile to buy the mobile company. The deal places a value on share capital of Virgin Mobile at £962.4 million. Those holding shares in Virgin Mobile will be able to exchange these for cash or a mixture of NTL shares and cash. The full press release can be downloaded at the ntl.com website.
The deal brings with it a 30 year exclusive brand licence that will allow ntl to use the Virgin brand for its consumer business. This suggests we may see the consumer arms of the ntl:Telewest group rebranding in the future. The addition of a mobile operator to the fixed line telephone, cable TV and broadband triplet of services gives ntl:Telewest a dominate position in the UK telecoms and entertainment market. The ability to potentially offer a one-bill experience for so many services offers ntl:Telewest better customer retention rates, and for the consumer a lower overall bill.
Obviously at this stage, there is no concrete news on what new products or time scales for any rebranding exercises. This information should appear in the coming months.