BT Reportedly In Talks To Buy Back O2

According to sources quoted by El Confidential, UK telecoms giant BT is apparently in very preliminary talks to buy back a former property of their company – O2, one of the UK’s largest mobile networks.

BT is also reportedly readying themselves to enter the mobile network game, as the company up until now has mostly been concerned with landline communications, wireless infrastructure, as well as providing broadband internet and TV services.

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If the deal goes through., BT and O2 will be back together for the first time in ten years, as BT sold O2 for £17.7 billion pounds back around 2004. To sweeten the deal with Telefonica, the current owners of O2, BT is apparently offering a 20 percent stake in their capital, aka big money.

BT certainly have the knowhow, and indeed some of the require infrastructure to go it on their own in the mobile network game – recently acquiring a 4G spectrum in the UK. This means the company is in the position to broadcast 4G signals across the country on their own specific frequency.

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However, to really make it in on their own the company must spend money – either on their own kit or another company. BT are apparently going for the latter, as the company said in a statement that they are “assessing the merits of an acquisition of a mobile network operator in the UK.”. It’s not confirmation of the purchase but it certainly does give credibility to the rumor.

O2 was sold by a cash strapped BT to European company Telefonica in the early 2000’s, in what is considered by some to be the worst decision in UK mobile network history, as the industry increased massively in value following the sale.

If the deal goes through, not only will BT reunite with long lost partner O2, but the company will become the only one in the UK that’s capable of offering every telecoms and digital broadcast service currently around, making them a ‘quad pay provider’ capable of offering a single monthly payment for TV, internet, mobile and landline services.

We’ll keep you updated on BT’s potential purchase of O2, as it’s not every day that a company gets bought back by its original owners in the tech industry, especially in the UK. Stay tuned for more news as the story unfolds.

Source: El Confidentiale

Via: BBC