The press release announcing the proposed merger of Liberty Media’s Virgin Media and Telefonica’s O2 says the “50-50 joint venture brings together Virgin Media, the U.K.’s fastest broadband network, and O2, the country’s largest mobile platform.” And though such releases often are filled with hype and hope, the release literally describes reality.
Though BT leads for U.K. mobile account installed base, O2 has been close behind, in recent years. Likewise, BT leads for U.K. fixed network accounts and internet access, but Virgin Media is a strong number-two and actually leads in the highest-speed lines in service.
What happens next is the issue. Point Topic had formerly predicted flattish growth for Virgin Media, based in large part on its more-limited network footprint. That could change, as the firm continues to invest in network coverage. If Virgin Media’s network expands, so should its market share.
The firms also expect operating and overhead savings.
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