Rivals seek to derail BTs quad-play ambitions

UK's Competition and Markets Authority (CMA) has dealt a major blow to BT's much celebrated acquisition of mobile telecom operator EE with a view to enter the burgeoning quad-play market.

As reported by the Financial Times, the CMA has raised several doubts over BT's acquisition of EE which could inflict a 'potential impact' over the much anticipated deal.

The CMA is also in the process of inviting rival telecom firms to voice their opinion on the deal, a move that will surely have operators like Three, O2 and Vodafone sharpening their knives. BT's acquisition could lead to an instant dominance in landline, broadband, TV and mobile markets with a long term impact on the turnover of rival operators.

BT provides connections between mobile masts to mobile operators and rivals fear that BT's entry in the mobile space could lead to the latter allocating superior broadcast towers to itself.

Vodafone has been quite vocal in this regard by going to the extent of approaching Ofcom on BT's business practices.

However, BT seems far from being ruffled by rival concerns, claiming to be 'pleased' with the process of rival companies being offered a voice regarding the deal.

"We believe the proposed acquisition will be positive for consumers, businesses and the UK, with BT creating a world-class digital infrastructure for Britain," a BT spokesperson added.

With broadband and mobile genres taking over from the landline business in the UK at a pace faster than ever, BT's move seems to be perfect in terms of timing and scale. However, the regulators' take on the merger deal could soon turn out to be a game changer.

Watch this space.

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