Vodafone To Bid For T-Mobile

[Horizon]

http://news.bbc.co.uk/1/hi/business/8123616.stm

If Vodoafone do buy T-Mobile this may impact VM as Virgin Mobile use T-Mobile's network.

[Raistlin]

Not actually 'News' about Virgin Media.

Moved to 'Other Telco Services Discussion'.

[Horizon]

It's not directly about VM, but VM use T-Mobile's network so has a direct knock on effect. But hey-ho...

[Stuart]

It's not directly about VM, but VM use T-Mobile's network so has a direct knock on effect. But hey-ho...

Not necessarily. It may not affect VM at all, and even if it does, they'll just switch to another network..

[AndyCambs]

Not necessarily. It may not affect VM at all, and even if it does, they'll just switch to another network..

If they changed networks then it would probably have a knock on effect as there would be new wholesale contracts.
I'd guess though that IF Vodafone did buy T-Mobile, then it would be with existing contracts with Virgin Mobile in place.

[m419]

Vodafone strangely enough works well at resolving business deals and decision, its been working with Hutchison Whampoa at selling and buying networks between each other such as Hutch formerly Orange india now its Vodafone india.

Don't see why Virgin Mobile should be effected in any way.

I think Richard Branson has been after the Cable TV franchises for a long time but it hasn't worked out as planned and only has a nearly 7% share in Virgin Media. I mean look how long the Virgin Group have been working with NTL and Cable and Wireless! Since 1996! Virgin Enterprises even tried to launch a TV channel 'Virgin TV' back then too.

But anyway back to the subject.......

It doesn't necessarily mean that Vodafone will take over T-Mobile's UK operation, I can't see the Competition Commision agreeing with the idea either, Vodafone is the largest mobile network in the world but not necessarily in the UK, therefore it can be seen as a threat to competition.

The best situation is for Hutchison 3G to take over T-Mobile's UK operation, that way the networks can be intergrated over time and improve 3G quality as well as provide a 2G/2.5G back for Hutchison 3G,currently 2G reception is provided by Orange and its costs them money which means 3 pass that onto to customers, not good!

[brundles]

Not necessarily. It may not affect VM at all, and even if it does, they'll just switch to another network..

It would have to affect VM quite significantly - it's not a particularly simple or cheap job to just switch to another network, and certainly not something they could do without disrupting their existing subscriber base (and that's assuming Vodafone were helping with the move rather than hindering).

A gradual migration starting with new subs starting on the new host network, fair enough but that brings the situation where the incumbent can start to really twist the screws for as much money as possible - and for a decent sized MVNO like Virgin Mobile could be painful.

---------- Post added at 22:17 ---------- Previous post was at 22:15 ----------

It doesn't necessarily mean that Vodafone will take over T-Mobile's UK operation, I can't see the Competition Commision agreeing with the idea either, Vodafone is the largest mobile network in the world but not necessarily in the UK, therefore it can be seen as a threat to competition.

The best situation is for Hutchison 3G to take over T-Mobile's UK operation, that way the networks can be intergrated over time and improve 3G quality as well as provide a 2G/2.5G back for Hutchison 3G,currently 2G reception is provided by Orange and its costs them money which means 3 pass that onto to customers, not good!

Last I heard, 3 was carried over O2 for 2G/2.5G service - when did that change? Just curious!

[m419]

3 bagan using Orange in 2006, they then used both O2 and Orange for about a year and then dropped O2,that was probably to ease service disruption.

[m419]

Also, what about BT Mobile?

BT Mobile originally used the O2 network, on 31st July 2003 it began using T-Mobile and then in 2006/7 it began using Vodafone's network.

So if they can switch easily as that,I'm sure Virgin Mobile will.

Possibly 3 would be a good network for Virgin Mobile if it was to quit using T-Mobile.

In terms of working successfully with each other, 3 has the least competition with Virgin Mobile/Media.

O2: Direct competition with home Virgin broadband of up to 20MB.
Orange: Direct competition with Virgin Broadband,Virgin phone and Virgin National services.

Vodafone doesn't have many home/business services to compete with Virgin Media.

In fact 3 and Vodafone would benefit from a large virtual network.

Also, what if Virgin Mobile start offering cheap Mobile TV with there own TV channels such as Living,Challenge,Bravo and Virgin 1? That would also be a selling point for Virgin Mobile phones.