Network management Toolkit

NTL-Telewest merger finalised

Colin Barker ZDNet.co.uk

Published: 06 Mar 2006 13:05 GMT

NTL completed its £3.4bn acquisition of Telewest Global on Monday, losing the Telewest name in the process. The combined company will be simply NTL.

Former NTL stockholders now own approximately 75 percent of the combined company with former Telewest stockholders owning the rest.

The combined company will have nearly five million customers, including 2.5 million broadband users. The deal leaves the UK with a single cable operator and the combined company will have more broadband customers than any other ISP.

While both companies are primarily focused on consumers, with their triple-play of telephony, Internet access and digital television, the deal has implications for corporate customers too. Telewest sells telecoms services to businesses and the public sector through its Telewest Business division.

Although the combined company is called NTL, it will offer services under NTL Telewest branding. This may be an attempt to bolster its customer service reputation.

according to a recent survey from research company JD Power which found Telewest ranked top of the Internet providers, AOL second, followed by Wanadoo. NTL was at the bottom of the list, just behind BT.

"This combination of two industry leaders positions us to better fulfil our commitment to serve our customers," said Jim Mooney, chairman of NTL, in a statement. "We are grateful for the strong support for this merger demonstrated by stockholders, customers, employees and the communities we serve."

NTL and Telewest have predicted that the merger will allow them to save around £250m a year by 2008 and generate added value of £1.5bn, which could help the company to cut its prices.

Did you find this article useful?
91 out of 152 people found this useful

Post a comment

Full Talkback thread

0 comments

More In Network management

Company/Topic Alerts

Create a new alert from the list below:

Related Jobs

Director Business Development- London- based on experience

Vice President of Bus. Development, ETRM. Global Leading Consultancy

Network Architect, Telecoms, Cisco, LAN, WAN, MPLS, Security, London

Featured Talkback

Could it be that ISP’s are making this out to be a bigger problem than it actually is? We’re a small country with an internet penetration of less than 60%, for every Youtuber there’s someone who only uses the internet to check their emails, more people surf on their mobile handsets than a few years ago. Surely things should even themselves up.