LightReading – UK Needs O2/3 to Challenge BT/EE – Analyst
UK regulators should approve the mobile merger between O2 and 3 to create a counterweight to a combined BT and EE, according to Bengt Nordström, the CEO of consulting and market research player Northstream.
As far as Nordström is concerned, regulators are being shortsighted if they believe that blocking mergers is in the interests of the market.
“It’s quite simple — when you talk to the number three and four players in the market, they don’t see a viable business going forwards,” he says. “The signals from Ofcom and the European Commission demonstrate an ignorance about how investors will react — they are scaring away investors and that is counterproductive.”
Nordström says that blocking the merger between 3 and O2 would only lead to cost cutting, outsourcing and less investment in future.