Broadband Suppliers Should Get Ready for Takeover Offers

The UK broadband market is notoriously crowdedtelecoms companies are trying to secure long
but has become smaller over the last few years,term relationships to recoup the amount they
as a minority of very successful Internet Servicehave hadto pay to entice new customers in.
Providers (ISPs) have begun to dominate theTherefore they need to be able to offer
market. Experts now predict that the industry isbroadband, mobile and fixed phone lines so that
about to see a period of consolidation, wherecustomers have a 'one-stop shop' for their
more ISPs are taken over and the broadbandcommunication needs.
market starts to merge with other markets,The UK broadband market is currently in the
including mobile telephony.middle of a price war, which has led to some
The UK broadband market is still very crowded inclever bundling of products. To date, this mainly
terms of ISPs, and you have some big winnersmeans fixed phone and broadband services, but
and some also-rans. A period of consolidationwhy not add mobile and TV content into the mix?
makes sense for businesses and consumers, asBT is expected to launch a Broadband TV
traditional mobile operators have the globalproduct shortly and Channel 4 now offers new
financial muscle to buy out some of the smallerepisodes of Desperate Housewives and Lost via
UK broadband ISPs.its website.
The convergence between mobile, broadband andRecent press reports have also suggested that
fixed line operators has already begun: NTLVodafone and O2 are looking to enter the UK's
already owns Virgin mobile and Wanadoo isfixed line marketplace, simply to acquire
re-branding to Orange. For consumers, this meansbroadband customers. Telefonica, the parent
that you'll soon be able to pay for all yourcompany of O2, is Spain's largest provider of
communication - internet, home phone and mobileinternet TV services, and this will surly push O2 to
- on one bill. Are Vodafone, O2 and 3Mobile at riskeither enter the UK market independently or
of being left behind as the bundle becomes everacquire a leading UK ISP.
more prominent as a marketing strategy?We may also find that if Channel 4 viewers have
T-Mobile has announced its intention to offer aan appetite for TV over broadband, some of the
wireless broadband service via 3rd generationother commercial broadcasters may decide to
mobile networks, and the TalkTalk 'freehave a closer look at some ISPs, because at the
broadband' offer has redefined customers'moment the advertising potential of this
expectations in terms of value for money. Thedistribution is largely being ignored.