Feeds

BT faces £15bn network bid - report

'Rumour and speculation,' says telco

  • alert
  • submit to reddit

Providing a secure and efficient Helpdesk

BT faces a £15bn bid for its UK network, The Observer reports.

Private equity groups such as Apax, Permira and Babcock & Brown could be getting ready to make a bid, according to the newspaper. The firms could make a bid for BT's network even if Ofcom doesn't rule in favour of a split, it claims.

The report, which does not cite sources, follows confirmation by the communications regulator, Ofcom, that it is considering the question of splitting BT as part of its review into the UK's telecoms sector.

A spokesman for BT dismissed the report as "rumour and speculation".

The idea of splitting BT's retail division from its network in a bid to increase competition is something that just won't go away. Describing it last week as an "old chestnut", BT said that "no other nation has contemplated the break-up of a former incumbent and the arguments against such a move are well rehearsed."

In 2001, German investment bank, West LB, offered £18 billion for BT's landline phone network. While Earthlease, a consortium led by Babcock & Brown and Chancery Lane Capital, bid £8 billion for BT's local loop, the wires that connect homes and businesses to its network.

At the time BT bosses said the network - or part of it - was not for sale. BT Retail chief exec, Pierre Danon, was "fiercely opposed" to any sale of the company's network adding that flogging the network would be the "most stupid thing you can do". ®

Related stories

Ofcom confirms BT break-up review
New BT chief rules out network sale
West LB cans bid for BT phone network
BT offered £18bn for phone network

Choosing a cloud hosting partner with confidence

More from The Register

next story
Brit telcos warn Scots that voting Yes could lead to HEFTY bills
BT and Co: Independence vote likely to mean 'increased costs'
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
New 'Cosmos' browser surfs the net by TXT alone
No data plan? No WiFi? No worries ... except sluggish download speed
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
Turnbull: NBN won't turn your town into Silicon Valley
'People have been brainwashed to believe that their world will be changed forever if they get FTTP'
Blockbuster book lays out the first 20 years of the Smartphone Wars
Symbian's David Wood bares all. Not for the faint hearted
Bonking with Apple has POUNDED mobe operators' wallets
... into submission. Weve squeals, ditches payment plans
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
Protecting users from Firesheep and other Sidejacking attacks with SSL
Discussing the vulnerabilities inherent in Wi-Fi networks, and how using TLS/SSL for your entire site will assure security.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.