An important 48 hours for BT

October 10th, 2019

Even for a company as large as BT, spending £17bn in 48 hours is something to get the senior staff members on the edge of their seats.

With the potential acquisition of telecoms giant EE in the pipeline, BT may be paying around £12.5bn to increase their technology offerings into a quad-service of broadband (with OpenReach), mobile (with EE), TV service and home phone.

The rest of the £17bn figure came from the first round bid for Premier League football matches that BT have submitted at auction.

Whilst it may look like a lot of money going out and perhaps some time before any starts to come back in, BT’s CEO Gavin Patterson seems to be making long term strategic decisions that look as if they will pay off in the future. He wants to develop a company that will stand the test of time and not be weakened when particular markets ebb and flow. To achieve this he wants to create a streamline, efficient and cost effective organisation that addresses the core needs for communications and entertainment.

What BT is also aiming for is a connected series of markets. By combing Broadband and Mobile coverage along with home lines, BT is able to offer a full package of services. With consumers not wanting to use multiple companies for different tech/communication services, a full range offering by BT looks likely to be very popular. Patterson is hoping that those who engage with BT on a quad-service level will find their services consistent between broadband, wireless, 3G/4G wherever customers are or go.

The acquisition of EE brings the very successful BT into the mobile market and with the backing of their infrastructure and communications expertise; it looks as if EE may be an excellent acquisition for BT, and one which will be extremely profitable.


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