I wouldn't be surprised if 2 degrees was the preferred takeover target instead of Sky for a telco play by Vocus. I don't really see the synergies between Vocus and a content focused player like Sky, whereas the benefits of adding a mobile network to VocusNZ operations is an obvious move (especially with Spark & Vodafone amping up their Fixed Wireless Broadband plays)
It could well be that the new Vocus owners see further expansion opportunities by buying companies like 2Degrees.
Ultimately though, my view is that Vocus would still be missing the 'secret sauce'. Yes, they would be 'bigger' if they acquire more of the telco players that are smaller than Vodafone and Spark.
But to really compete with Vodafone and Spark, I think owning an asset like Sky would be hugely beneficial. Clearly Spark think the content game is worthwhile, given they have:
1. A wholesale deal with NETFLIX
2. A wholesale deal with Sky for NEON
3. Their own sport offer - Spark Sport
4. A wholesale deal with Sky for Sky Sport NOW (packaged with Spark Sport).
Vodafone have Vodafone TV. They don't appear to have made a huge success out of this so far, and the UX still needs improvements...but it does allow their customers to get cheaper Sky TV packages. I think you can get 'The Works' for as low as $90/month (when it would normally be about $120/month if you had Starter + Entertainment + Sport + Movies + SOHO + MySKY).
Sky UK have been a large success in Europe by packaging their content (core competency) with broadband and mobile.
Vocus can already offer Fibre-Mobile-Energy bundles. If they were merged with Sky it would allow Super Bundles... with a lot of flexibility. Some packages would be tailored to the large base of satellite subs...other packages would be tied to bundles with the streaming services. They would literally have something for everyone.
Now imagine if you are a customer of theirs and your internet, mobile, electricity and Sky content (be it satellite or streaming) is with 'SkyVocus'. How likely are you to switch to Vodafone, even if they might save you $10 per month on your broadband component? I think an entity like this would have the 'stickiest' customers in the industry.
We also need to remember that the comcom hates sky, any merger may throw up the issues that other telcos etc voiced back when vodafone/sky tried it last time.
We also need to remember that the comcom hates sky, any merger may throw up the issues that other telcos etc voiced back when vodafone/sky tried it last time.
Vocus could buy Sky. No issues from a regulatory perspective.
We also need to remember that the comcom hates sky, any merger may throw up the issues that other telcos etc voiced back when vodafone/sky tried it last time.
May not anymore recently approved the sale of OSB.
May not anymore recently approved the sale of OSB.
Plus the decision against Sky-Vodafone was a 50/50 call back in 2018 (according to the decision maker in an interview afterwards).
A lot has changed since 2018. Entertainment has been further fragmented with new OTT streaming services and Spark has proven that Sky does not actually have a monopoly on sport given they so easily launched their own service and picked up a number of high profile events.
No way could the same arguments be used again to block a deal in 2021.
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Originally Posted by LaserEyeKiwi
correct.
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