o2 "pounces" on smart telecom...

bealtine

http://www.independent.ie/business/irish/o2-pounce-on-smart-telecom-1339684.html

O2 pounce on Smart Telecom

By Shane Ross
Sunday April 06 2008

O2, the vast European telecoms group, is in advanced discussions with Smart Telecom with a view to a takeover of the Irish operator.

Industry insiders have told the Sunday Independent that talks have been going on for several weeks and that heads of agreement could even be signed in the next 10 days.

It is understood that an all-cash offer is on the table.

The approach from 02 to Smart marks a remarkable turnaround in the fortunes of Smart Telecom, which was facing closure after it ran out of cash less than two years ago. It was rescued by its current major shareholder, entrepreneur Brendan Murtagh, who bought the company for €1 before injecting over €40m to keep it afloat.

Prior to Murtagh's intervention Smart's 50,000 customers had been cut off by eircom.

Since then Smart has transformed its balance sheet. Last year, Mr Murtagh merged his valuable T50 network interests into Smart as part of a €65m refinancing. Analysts at the time put a value of over €25m on this asset.

The T50 network is one of the largest fibre networks in the greater Dublin area.

Last year's refinancing package also involved the issue of €50m in loan notes to a syndicate of investors, including a number of US and European institutions with telecoms interests.

Sources close to the buyers said that the takeover price was not yet finalised but that all existing shareholders, including Mr Murtagh, would see a healthy profit if the deal goes through.

The purchase of Smart will give 02 an even bigger share of the Irish mobile and broadband market.

Sources at both companies refused to comment .

- Shane Ross

PixelTrawler

Smart are known for good service, good packages, and support has been great any time ive used it.

The capless packages are refreshing in Ireland.

I hope 02 only improve it and not ruin it...

watty

bealtine wrote: »

http://www.independent.ie/business/irish/o2-pounce-on-smart-telecom-1339684.html

O2 pounce on Smart Telecom

By Shane Ross
Sunday April 06 2008


The purchase of Smart will give 02 an even bigger share of the Irish mobile and broadband market.


- Shane Ross

Why can't Journalists research?
Smart does NO Mobile, and ANY Broadband gives O2 a bigger share of Broadband, because GPRS/EDGE/3G/HSDPA are Mobile Internet, not Broadband technology.

It will be good for long term supply for Smart Customers, though the prices may go up.

bealtine

watty wrote: »

Why can't Journalists research?

Why let mere facts get in the way of a good story?

O2's entry was "probably" motivated by Telefonica's desire to get into the fixed line business in the territories in which o2 operates.

We now have Spainish/UK incumbents operating here. I wonder when we'll see this illusive "competition" that the EU promised
us in the telecommunications field?
It seems that Comreg's implementation of competition is either badly understood or incorrectly applied.

Currently in mobile we have an oligopoly with amazingly similar derisory ripoff deals.Then in fixed line we have little or no competition at all.

I always found it ironic that o2 should be spunoff from bt only to find itself swallowed up by another fixed line player...

damien

watty wrote: »

Why can't Journalists research?

Why can't you read? If you read what you quoted you'd maybe see Ross wrote "market" not "markets". Maybe if he promises to do more research you can break out the Ann and Barry books again and learn to read that bit better. Maybe then you can tell singular and plural words apart.

watty

Eh? It's badly written then.
As Mobile and Broadband are separate markets. The main strategy from the beginning of Smart was to build market share irrespective of profitability and get bought out. However they lost their resold base and now only have limited geographical LLU. O2 maybe should have bought them before that happened.

There is no doubt it's good for Smart & Smart customers & Smart Shareholder(s). I'm curious to see how O2 & Vodaphone develop their fixed line customer bases.

helimachoptor

Most likely Vodafone having acquired Perlico will offer some sort of triple play package/quad package.

So you can get your home phone/mobile phone/ fixed BB and mobile BB from them. If they got their ass in gear soon I'm sure they would make a killing.

Same for 02.

damien

Perlico have something interesting on the way ... I've er heard.

DMC

watty wrote: »

Why can't Journalists research?

By Shane Ross

And its the Sunday Independent.

Just above blogs the scheme of things.