BT Re-Entering Mobile Market in $19.5B EE Talks

The transcript discusses a billion-pound deal involving the UK's largest mobile operator, EE, potentially transitioning to BTS. The deal, valued at eight times EE's earnings, aims to create the UK's largest quad player by integrating mobile services with BT's existing TV, broadband, and landline offerings. Dutch Telecom and Orange, the stakeholders, will receive significant cash and stakes in the company. The market reacts with Telefonica's O2 not being selected, impacting its position.

What is the primary reason for BT's interest in acquiring EE?

• To enter the US market

• To focus solely on broadband services

• To expand its customer base significantly

• To reduce operational costs

What does BT aim to achieve by becoming a quad player in the UK market?

• To reduce its service offerings

• To offer a combination of mobile, TV, broadband, and landline services

• To exit the broadband market

• To focus on mobile services only

What percentage of the company will Deutsche Telecom hold after the deal?

• 4%

• 12%

• 20%

• 8%

Which company will receive a larger cash benefit from the deal?

• Deutsche Telecom

• Orange

• Telefonica

• O2

Why is Telefonica's stock falling in relation to this deal?

• Because O2 was not chosen for the acquisition

• Due to increased competition in the US

• Due to a decrease in broadband subscribers

• Because of a failed merger with Orange