The CEO of Virgin Media O2 (VMO2), Lutz Schüler, has urged the UK government to reconsider BT’s £400 million takeover of TalkTalk, warning the deal risks damaging competition in Britain’s telecoms market.
In an open letter addressed to Culture Secretary Lisa Nandy, the VMO2 chief has raised concerns about the rescue of the struggling broadband provider by its larger rival.
BT swooped on TalkTalk after it fell into administration, taking control of its consumer business and wholesale division PlatformX Communications.
The telecoms giant said the deal would protect services for 2.5 million customers, comprising 1.5 million retail customers and another one million wholesale customers.
However, Schüler has questioned whether handing the business to BT is the right long-term solution.
In a social media post, Schüler, said: “While protecting vulnerable customers is of course crucial, there is a difference between continuity in the short term and a permanent solution with a proper process that doesn’t just hand the keys to a dominant incumbent, steamrolling over competition rules.”
“Doing so makes a mockery of the market and sends a chilling message to investors,” he said.
This comes as the government stepped in amid fears that TalkTalk’s collapse could cause widespread disruption to broadband and telephone services.
At the time, Nandy said:”Phone and broadband services are vital national infrastructure. If TalkTalk services fail, there is a genuine risk to life and public services – including to hospitals, schools and emergency care.
“These are unprecedented circumstances that require action now. That is why I am acting with urgency to ensure that impacts on public health, critical national infrastructure and supply to vulnerable customers are fully considered as part of this process.”
The Competition and Markets Authority (CMA) has launched an investigation and has been ordered to report back to Nandy by 19 October .
IN RELATED NEWS
, Lutz Schüler, has urged the UK government to reconsider BT’s £400 million takeover of TalkTalk, warning the deal risks damaging competition in Britain’s telecoms market.){kind=link}