BT in Talks to Buy O2

BT has confirmed that it is in talks to buy back 02, a company which it sold to Spanish telecoms giant Telefonica over a decade ago.

The move would make BT a major player in the UK mobile network market, a market that BT has been interested in joining for some time. BT recently signed up to use EE’s network as a Mobile Virtual Network Operator, MVNO.

Engadget points out that BT already owns its own 4G spectrum, but that is not nearly enough to make it a major player in the mobile network business. Purchasing o2 however, would certainly expand BT’s current operations massively.

Interestingly, Telefonica would receive a 20 percent stake in BT if the deal took place, with the two forming a “strategic alliance”.

Source: Engadget