BT and EE's merger set for watchdog scrutiny

Britain's competition watchdog is inviting telecoms companies to voice their concerns about BT and EE's planned 12.5 billion merger.

A letter to telcos and media firms from the Competition and Markets Authority (CMA), seen by the Financial Times their views on whether to let BT and EE merge their businesses.

If the merger goes ahead, BT will take a 31 per cent share of mobile subscribers in the UK and 35 per cent of broadband subscribers. BT claims both firms' customers stand to benefit from the deal by gaining twin access to the UK's biggest fibre and 4G networks.

But one issue that telcos may object to is that, as a result of the merger, BT will take 70 per cent of all wholesale broadband connections, which will significantly shake the market up.

If rival providers object to the merger, the CMA may request that BT's broadband rollout division Openreach provides access to its network at a price set and regulated by Ofcom, rather than giving BT preferential rates.

However, some of BT's competitors including TalkTalk and Sky are asking that Openreach becomes a separate entity to BT.

BT, however has welcomed the investigation.

A spokesperson told the FT: "We are pleased the CMA has begun to ask industry for its views. This was always going to be part of the process, and we welcome the fact that industry is being given an early opportunity to provide comments.

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

Clare Hopping
Freelance writer

Clare is the founder of Blue Cactus Digital, a digital marketing company that helps ethical and sustainability-focused businesses grow their customer base.

Prior to becoming a marketer, Clare was a journalist, working at a range of mobile device-focused outlets including Know Your Mobile before moving into freelance life.

As a freelance writer, she drew on her expertise in mobility to write features and guides for ITPro, as well as regularly writing news stories on a wide range of topics.