UK telecom regulator Ofcom appears to have given its backing to BT's proposed takeover of EE, the Daily Telegraph reports. Ofcom does not have the final say on the merger, but submitted its opinion in the consultation underway by the Competition and Markets Authority on the takeover. In its 65-page submission to the CMA, Ofcom said that in many areas it already had powers to stop the combination of Britain’s biggest broadband provider and its biggest mobile operator from harming competition. An example is in the fibre backhaul market for mobile masts, where Ofcom can check BT's strong position and ensure it does not favour EE over other mobile customers.
Ofcom also dismissed concerns about the large amount of spectrum the new combination will hold, saying it was not clear that the higher mobile broadband speeds the extra capacity will allow them to offer were a significant advantage in the market. It also appeared to dismiss arguments from rivals such as Vodafone, and potentially Three and O2, that they will struggle to meet capacity demands, pointing to technological solutions and upcoming spectrum sales.
Ofcom noted however that the decision is in part dependent on whether the separate takeover of O2 by 3 UK goes ahead, reducing Britain to three mobile networks from four. There could be more of an argument for keeping BT and EE separate then, as BT represents an additional competitor on the mobile market, Ofcom said.
