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Old 19-03-2023, 14:54   #6
Chrysalis
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Re: Virgin Media in talks to possibly acquire City Fibre, for £3bn

Quote:
Originally Posted by Pierre View Post
Not implausible, but i don’t see where the value is in that acquisition.

City Fibre is not just an Altnet, they’re also a carrier, with national core network acquired from Torch, that VM doesn’t need but would be priced in to any deal.

VM just needs the FTTP access network.

VM buying smaller Altnets where they don’t currently have a footprint makes more sense.
Whilst I felt CF was the least likely to be taken over it does make sense for VM.

VM have plans to rollout FTTP (in their existing areas), and like VM, CF has concentrated on cities, indeed, CF are currently rolling out to the majority of my city, and VM also covers most of it, they would be basically buying the infrastructure which will make things much easier for VM on their rollout.

However the downside will be reduced competition, my city has currently no openreach FTTP, and CF were looking set to have a monopoly in most of the city on FTTP with VM been their only competitor some years later, if this takeover happens VM will have that monopoly instead, CF support IPv6 etc. whilst VM dont. so as a consumer I would rather VM build their own FTTP instead of taking over CF, but it does make sense for VM to buy CF assuming the cost isnt too dissimilar or cheaper than doing their own rollout. Bear in mind CF did much of it before costs have skyrocketed, so the maths have changed.

Last edited by Chrysalis; 19-03-2023 at 15:02.
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