Press Release of the Day – 7th May
Virgin Media/O2: ‘Poses a major challenge to the dominance of BT’
Commenting on the confirmed merger between Virgin Media and O2 Holly Niblett, head of digital at comparethemarket.com, said:
“The merger between Virgin Media and O2 poses a major challenge to the dominance of BT in the UK and could shake-up the sector. Shared costs between Virgin Media and O2 should enable cost savings that, in an increasingly competitive market, may be passed onto customers as the big players battle for market share. BT could respond to this threat to its market-leading position by lowering prices, which would be good news for consumers. Broadband is increasingly being recognised by the government as an essential utility, and significantly this deal also promises multi-billion pound investment in the UK’s broadband network. Our research found that almost two thirds (63%) of UK households experience broadband outages every month – and over one in ten claim that slow speeds materially impact their ability to work from home. With signs that working from home might become a longer-term trend for many, millions would welcome faster mobile and broadband connections. Comparing prices and connection speeds between providers online remains one of the most effective way for households to secure a good deal.”
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