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[N4Z.]

NTL has finally confirmed that it is to acquire Virgin Mobile as part of a master plan to create a giant communications company to take on pay TV outfit Sky and incumbent telco BT. The deal values Virgin Mobile at £962.4m - almost £150m more than was originally rejected by the Virgin Mobile board in December last year.

As part of the deal, NTL (which is already merging its operations with Telewest) has entered into a 30 year exclusive brand licence with Virgin Enterprises Limited to use the Virgin brand for the cableco's consumer business.
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Not only does NTL reckon the deal is good news for shareholders, it predicts that it will help transform the operations from a triple-play cable provider into "a national entertainment and communications company, harnessing the powerful Virgin consumer champion brand".

This increase in size will also enable the business to "compete more effectively with the large incumbents in the UK telecommunications market" as it looks to develop "converged fixed and mobile telephony devices, and video and voice services".

Edited by Synitex, 07 August 2006 - 02:32 AM.