BOB fm

Latest news, breaking news and current affairs coverage from across the UK

O2 for Virgin Media |  UK recognizes mega-merger between economy

O2 for Virgin Media | UK recognizes mega-merger between economy

The competition regulator in the UK announced on Wednesday (14) that it had agreed to add 31 31 billion (US $ 43 billion) between telecom operators Virgin Media and the Spanish subsidiary Telefenica’s British subsidiary O2.

The Competition and Markets Commission (CMA), which opened an inquiry into the move in December, presented its provisional findings in a statement.

The service has previously ruled out negative consequences for private customers because the services provided are different and Virgin’s mobile phone sector is too small to compete with O2.

For this reason, the investigation focused on total services because both groups offer their networks to multiple operators.

But the CMA felt that the potential for reducing competition in the sector was low because there were other companies, such as the British company PT.

Research co-ordinator Martin Coleman explained that the investigation “shows that this activity should not mean an increase in prices or a reduction in the quality of service on the mobile phone, which means customers should continue to benefit from strong competition.”

O2, a subsidiary of Telefenica, a Spanish telecommunications group, and Virgin Media, an American subsidiary of Liberty Global, submitted a joint project in May 2020.

Some analysts feared that the companies would form a much larger group compared to the country’s largest telecom operator PD and its direct competitor Vodafone.

O2 is one of the few mobile operators in the UK. The company has 34 million customers, including a few million from virtual operators who lease its network, such as Tesco Mobile.

Virgin Media, acquired by Liberty Global in 2013, owned by billionaire John Malone, has six million internet customers and 3.3 million mobile customers.

The CMA investigated the matter after it was approved by the European Commission to study the project in November.

The British company said the megabusion would mainly affect the United Kingdom and that the results of the investigation would be announced after January 1, after the Brexit transition period.