“All the characteristics of a stitch-up masked as a rescue deal in the public interest,” thundered Virgin Media O2. It’s not an unreasonable view of BT’s hurried weekend acquisition of TalkTalk. Once upon a time, TalkTalk was seen as a plucky upstart performing the useful role of irritant to BT’s giant Openreach broadband operation. Now the challenger is being consumed by the dominant player via a pre-pack administration that minimises short-term political headaches.
Here’s the problem, though, with the cosy stitch-up thesis. For all the howls of outrage, it’s hard to see what the culture secretary, Lisa Nandy, who gave her blessing by issuing a little-used public interest notice, was supposed to do differently. Alternative approaches, notably a chaotic collapse of TalkTalk without a rescue plan for the customers, risked worse outcomes.
