[3GScottishUser]

O2, the mobile phone operator now owned by Spain's Telefonica, is considering a move for a UK internet service provider and is understood to have Cable and Wireless's Bulldog division and Tiscali's UK broadband business in its sights, according to reports.

Although the company has yet to make an approach, the fact that it is considering an acquisition shows that O2 is responding to the threat posed by rivals which can bundle mobile, fixed-line and broadband products or deliver services using both fixed and mobile networks, the Independent newspaper said today.
An O2 spokesman said: 'We're looking at options to either buy an ISP or go down the wholesale route or, alternatively, we may do nothing. However, no approaches have been made and no decision has yet been taken.'


One source said that O2's examination of potential UK targets was at a preliminary stage, the newspaper said.

C and W is thought to prefer an alliance with a mobile operator but has not ruled out a sale of Bulldog if the price is acceptable, The Independent added.

http://www.businessworld.ie/livenews.htm?a=1412617;s=rollingnews.htm

[Ben]

Wait... aren't those the very same companies Vodafone is about to snap up? :rolleyes: I think the business world is being a little jumpy :P

[3GScottishUser]

With Orange and NTL already in possession of both wireless and broadband/landline customers the triple/quad play factor now appears a big issue.

I expect Vodafone and Telefonica to expand their product ranges and 3 UK to be sold off by HWL to a big fixed line/broadband provider (no prizes for guessing which company could be the most likely suiter).

That would produce four mobile networks each with Landline, Broadband and Cable type content potential. T-Mobile may decide to go down the same route but may be quite happy if their arrangement with Virgin/NTL delivers them value.

[Hands0n]

I just hope that this isn't "dot com" all over again! The hype around triple/quad play does not necessarily gain the financial successes that these are hoping for. There is a lot of hard work ahead for these companies to get their corporate heads around the very different markets that exist around their products. Simply calling it convergence is no guarantee of success. Imagine running the ISP part of the business like a traditional PTT (yuk!) phone/mobile company!

A lot is at stake here, will it pay off? I'm not entirely convinced that the buyers have the corporate mindset to make too much of a success. Simply having content available across the numerous delivery channels is not enough - it is only a solution looking for a problem. The delivery and marketing problems that surround much of broadband and mobile delivery of content remain to be surpassed to the point where it is as successful and marketable as terrestrial and sattelite delivery - without the consumer requiring a degree in quantum physics.

Oh, and the utter shambles that is proprietary DRM needs to be resolved before any real success can me made - if they insist on using such methodology for "securing" their content!