Many of you will have seen that BT has openly expressed interest in going back into mobile with the acquisition of a large scale mobile operator in the form of either EE or O2 (the latter having previously been under the ownership of BT). This move would ensure that BT can offer a genuine “quad-play” service mix – the holy grail for all modern comms providers (shareholders appear to agree; on the basis of the 3% increase in share price on the day of the news).
The move back into mobile is interesting and a demonstration of the importance of making decisions based on the current environment regardless as to whether this goes against a previous strategy. The market’s reaction to the news demonstrates that credit is being given to BT for being unafraid to turn back the clock if the new strategy makes sense in the current environment – and it’s hard to argue that mobile isn’t the right strategy in the current market.
BT’s fluid approach is a poignant reminder that M&A is of paramount importance if you need to change the prevailing wind direction to avoid being all isolated out at sea.