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Essay / Research Paper Abstract
In October 2005 NTL and Telewest announced a merger. This 5 page paper consider the impact this merger will have on the way companies compete in the UK telecommunication and television industries, specifically with the two dominant companies of BSkyB also known to many as Sky and British Telecom (BT). The bibliography cites 5 sources.
Page Count:
5 pages (~225 words per page)
File: TS14_TEntltelewest.rtf
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Unformatted sample text from the term paper:
is an oligopoly with different dominant players in different segments of the market. In the cable television market NTL and Telewest were the major players, but their level of subscriptions
were small compared to Sky which was an alternative supplier supplying services through a satellite subscription. This is in effect a monopoly supplier of satellite services, having taken over
the former competitor BSB many years ago, to technically become BSkyB, and then Sky again. It was the telephone services that were
seen as a major source of income when the telephone market was liberalised, but here there is a different dominant supplier, British Telecom (BT). The once monopoly supplier has certain
controls to allow new companies to compete, but unlike switching companies that lease the lines from BT the cable companies were slower developing here with the need to lay their
own lines which meant they took longer to establish their market, and to gain access to the market they had, and still have, to persuade BT customers to change over
lines and numbers. In October, after a great deal of market speculation it was announced that Telewest and NTL were going to merge.
Looking at this we can see, for the first time, that there will be a company large enough to compete on a fairer and more similar basis with both Sky
and BT. This cannot fail to impact on the industry as a whole and both BSkyB and BT need to reassess their strategy.
The agreement is for a payment equal to US $6 billion made by NTL to acquire Telewest, the payment values the company at $23.93 per share with
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