Communications competition hots up with NTL/Telewest merger
Link: Communications competition hots up with NTL/Telewest merger
Cable companies NTL and Telewest have confirmed that they are to merge, creating a new competitive force in the UK’s communications and entertainment sectors.
The companies expect the deal to generate approximately £1.5bn in synergies, by optimising networks, systems and applications, implementing best practices and eliminating duplicated activities. The integration process is expected to result in the loss of up to one in four jobs from the combined workforce of 19,000 people, once the contract is finalised next year. Telewest’s acting chief exec Barry Elson and COO Eric Tveter are among those expected to leave.
A spokeswoman for Telewest said: “The best people will be needed for the new company - the integration process will be rigorous and there will be opportunities for employees from both sides.”
NTL’s acquisition values Telewest at approximately $6bn. The combined company will be able to provide TV, phone and broadband to more than half of UK homes. It will have almost five million residential punters and is expected to be the largest provider of domestic broadband services in the UK with 2.5m subscribers. It will also be the second largest pay TV company, with 3.3m customers and second largest telephony provider with 4.3m subscribers.
The enlarged group will generate revenues of approximately £3.4bn and operating income of £1.2bn.
Simon Duffy, NTL’s chief executive, will head the new organisation.
