BT’s purchase of TalkTalk is cosy – but probably politically sensible | Nils Pratley

For all the howls of a ‘stitch-up’, it’s hard to see what ministers were supposed to do, as the alternatives risked worse outcomes BT to buy broadband supplier TalkTalk in £400m rescue deal, saving 900 jobs “All the characteristics of a stitch-up masked as a rescue deal in the pu

For all the howls of a ‘stitch-up’, it’s hard to see what ministers were supposed to do, as the alternatives risked worse outcomes BT to buy broadband supplier TalkTalk in £400m rescue deal, saving 900 jobs “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. Continue reading...