BT is about to become the biggest service provider in the UK.
This is the result of a £12.5 billion merger with mobile phone provider EE, which was approved today by the competition watchdog.
The telecoms giant already controls 31 per cent of the fixed-broadband market, 37.6 per cent of home phone traffic and the EE deal will add 33.8 per cent from the mobile sector to their portfolio.
John Wotton, chairman of the CMA inquiry, said:
The group does not provisionally believe that, in a dynamic and evolving sector, it is more likely than not that BT/EE will be able to use its position to damage competition or the interests of consumers.
We recognise that this is a merger which is important to many consumers and businesses. We have heard a number of concerns from competitors. After a detailed investigation, our provisional view is that these concerns will not translate into a competition problem in practice.
The deal is expected to be completed in March, but what does this mean for customers?
On the plus side, BT and EE have promised to invest billions in Britain’s ‘digital economy’. The hope is that it will vastly improve broadband speeds across the UK.