Service Providers



Could O2 and Virgin Media Combination Finally Ignite the UK Quad-Play Market?



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Report Summary:

The planned merger of O2 and Virgin Media in the UK will create a new number 2 in the market and a strong infrastructure-based convergent rival to BT. The JV is targeting strong cost and CAPEX synergies, though modest revenue upside as consumers still see limited benefit in fixed-mobile service bundles. Virgin-O2 has a strong network roadmap, though needs more spectrum and really needs to develop compelling brand messages and marketing propositions to make cross-selling a success. For its rivals, there will be a need to focus on weak spots (and even blind spots) in portfolios if the quad-play finally takes hold.

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