Feeds

Job risk sours NTL/Telewest tie-up

'Rationalisation is likely'

Top three mobile application threats

NTL and Telewest have confirmed that they are to merge. But while the companies are "bigging up" the deal as creating a "new competitive force in the UK's communications and entertainment sectors", there are fears that thousands of jobs will be lost as part of the tie-up.

Bloomberg quotes financial outfit UBS as saying that as many as one in four of the 19,000 or so people employed by both companies could lose their jobs once the deal is completed next year.

Indeed, Telewest's acting chief exec Barry Elson and COO Eric Tveter are already set to leave once the deal is finalised.

While in today's announcement both companies noted that the deal would generate around £1.5bn in "synergies" which would be "realised through optimising networks, systems and applications, implementing best practices and eliminating duplicated activities".

It is the "elimination of duplicated activities" that is likely to cause concern within both companies' workforces.

Asked to elaborate, a spokesman for NTL declined to comment on future employment plans for the company.

However, a spokeswoman for Telewest was more up-front: "While rationalisation is likely it is really too early to get into the specifics as it's early days.

"The best people will be needed for the new company - the integration process will be rigorous and there will be opportunities for employees from both sides."

NTL's decision to acquire the UK's second largest cableco values Telewest at around $6bn and follows a flurry of reports at the weekend trailing the deal.

The pair - whose cable networks do not overlap - will be able to provide TV, phone and broadband to more than half of UK homes.

Once merged, the combined group will have almost five million residential punters and is set to be the largest provider of domestic broadband services in the UK with 2.5m subscribers.

It will also be the second largest pay TV outfit with 3.3m punters and the number two fixed telephony provider with 4.3m subscribers.

The enlarged group will also generate revenues of around £3.4bn and operating income of £1.2bn.

Said NTL chief exec Simon Duffy, who will also head the new organisation: "This is a transforming transaction for the UK cable industry. It marks not just the culmination of a decade of consolidation but, more importantly, the creation of a new competitive force in the communications and entertainment sectors in the UK." ®

Application security programs and practises

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Nadella: Apps must run on ALL WINDOWS – PCs, slabs and mobes
Phone egg, meet desktop chicken - your mother
White? Male? You work in tech? Let us guess ... Twitter? We KNEW it!
Grim diversity numbers dumped alongside Facebook earnings
Microsoft: We're making ONE TRUE WINDOWS to rule us all
Enterprise, Windows still power firm's shaky money-maker
HP, Microsoft prove it again: Big Business doesn't create jobs
SMEs get lip service - what they need is dinner at the Club
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.