HOUSEHOLDS in our area could see their phone and internet bills rise after BT announced a mammoth £12.5billion deal to buy mobile giant EE, it was claimed yesterday.
The deal will create the largest provider of home internet, mobile phones and landlines in the UK.
BT, a former state-owned monopoly, will use the combination to sell mobile phones to its existing base of 10million households. It is already the largest provider of landlines and home internet in the UK.
EE is currently the country's largest mobile provider, with just over 27million customers, and also has the largest number of customers using the superfast 4G mobile network – some 7.7million.
The deal will be scrutinised by the UK Competition and Markets Authority in a process that is expected to take until the end of the year. Until then both BT and EE will continue to operate as separate companies.
There are worries that the move will lead to higher prices for the majority of households. Customers who choose to take all four services – broadband, landlines, TV and mobile, a package known as quadplay – from the enlarged BT are likely to pay lower charges overall.
But there are fears that families who only pay for two or three services will see bills rise.
Another mega-merger is also underway, with mobile group O2 being bid for by rival Three.
