BT has announced it’s in talks to buy EE, the largest mobile network in the UK, for £12.5billion. BT has an exclusivity agreement with the owners of EE, Deutsche Telekom and Orange, which will prevent anyone else bidding for EE while the talks take place.
Telecoms giant BT said it has "several weeks" to complete negotiations and conclude the deal with its French and German counterparts. If the acquisition comes off, as it's largely expected to, it will make BT the king of quad-play - bundling mobile with TV, broadband and home phone - in the UK.
EE has 24.5 million mobile customers, a third of the UK's mobile market share by revenue and is the most popular 4G network in the country. If the deal goes ahead, BT will use EE to accelerate its plan to provide people with "seamless" internet access using a combination of 4G, fibre optic broadband and Wi-Fi.
However, BT - which offered mobile phone contracts as BT Cellnet until 2002, when it was spun off and became O2 - says it's confident it'll be able to offer a combination of mobile and broadband to regular folk and businesses even if the EE deal falls though.
But if the deal does go through, what will it mean for you? Dominic Baliszewski, our telecoms expert, says quad-play has the potential to save you "a great deal of money," and that BT is likely to offer some "very attractive deals" to those already with BT and EE.
"Should this deal go ahead, millions of people who are both EE mobile customers and BT broadband/TV customers already will effectively become triple or quad-play BT customers without even blinking. If you find yourself in this situation, don't feel rushed or pressured into signing up to a new contract."
Instead, Dom advises comparing deals and separating what you need form what you want, particularly when it comes to your mobile phone plan, as the market is increasingly tricky to wrap your head around.
Source: BBC News