Feeds

Carphone swallows Onetel, Tele2

It's good to Talk Talk

Top 5 reasons to deploy VMware with Tegile

The Carphone Warehouse is splashing out more than £150m to acquire Onetel and Tele2 as part of ambitious plans to challenge the dominance of UK telco BT.

Once the deals are completed both companies will be rebranded to Carphone's TalkTalk phone service giving its 2.4m voice punters the ability to call one another for free.

And it will add even more momentum to Carphone's plans to invest in local loop unbundling (LLU) and provide telecoms services direct to end users.

"Our goal is to become the number one alternative residential telecoms provider in the UK market," said Carphone announcing the deal.

"The acquisition of Onetel propels us clearly towards that position and gives us a substantial platform of profitable voice customers from which to launch our drive into the broadband market in 2006.

"It also allows two major competitors to join forces in their bid to deliver improved value and service to residential customers."

Carphone is paying £132m for Onetel, which was put up for sale in September by parent Centrica. Of that, £95m pays for Onetel's residential and business operations, with £37m relating to British Gas (also owned by Centrica) recruiting more punters for TalkTalk over the next three years. A further £22m could also be paid out if Centrica hits sales targets.

Onetel has more than a million voice punters, some 60,000 broadband users and 40,000 mobile customers. The deal is expected to be completed in the next couple of weeks and is tipped to increase Carphone's pre-tax profits next year by around £20m.

Speaking today Centrica chief exec Sir Roy Gardner said that Onetel had become a "significant residential fixed line competitor to BT".

"However, as we have made clear for some time, global energy markets are changing rapidly and we want to focus closely on growing our core energy and related services operations in the UK and internationally. We will continue offering telecoms services to our British Gas customers, but we don't need to own Onetel to do this," he said.

Separately, Carphone also announced today that it had snapped up Tele2 - which has some 188,000 customers in the UK and 36,000 punters in the Republic of Ireland - for £8.5m. ®

Beginner's guide to SSL certificates

More from The Register

next story
The 'fun-nification' of computer education – good idea?
Compulsory code schools, luvvies love it, but what about Maths and Physics?
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
Lords take revenge on REVENGE PORN publishers
Jilted Johns and Jennies with busy fingers face two years inside
Yes, yes, Steve Jobs. Look what I'VE done for you lately – Tim Cook
New iPhone biz baron points to Apple's (his) greatest successes
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Ex-US Navy fighter pilot MIT prof: Drones beat humans - I should know
'Missy' Cummings on UAVs, smartcars and dying from boredom
Sysadmin with EBOLA? Gartner's issued advice to debug your biz
Start hoarding cleaning supplies, analyst firm says, and assume your team will scatter
Edward who? GCHQ boss dodges Snowden topic during last speech
UK spies would rather 'walk' than do 'mass surveillance'
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.