Disposal of O2 looms for Telefonica

Disposal of O2 looms for Telefonica

According to Acquisitions Daily, as a result of the trend in the sector towards more bundling of fixed-line, mobile, broadband and TV services, Telefonica may well put its O2 mobile business in the UK up for sale.

While the Spanish telecoms group currently views the profitable O2 as a core operation, chief operating officer Jose Maria Alvarez-Pallete says the company might need to “evaluate our options” if the market went further down the road to such convergence. The expected return of BT to the mobile market next year, and the efforts of Virgin Media and Vodafone to broaden the scope of their offerings make this scenario highly likely.