Arqiva merger inquiry Ofcoms view on workable and effective remedies

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Arqiva merger inquiry Ofcoms view on workable
and effective remedies

• 16 January 2008

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Purpose

• To provide the CC with Ofcoms analysis and views
  on the potential structural and behavioural
  remedies with particular focus on
• avoiding SLC in MTS, and/or
• avoiding the adverse effects of the SLC in MTS

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Potential remedies already discussedCombining
structural and behavioural solutions

• Divest MUXes CD NGW TV MTS NGW Radio MTS
• Divest large package of TV and radio MTS drawn
  from Arqiva and NGW
• Divest NGW TV MTS transferable Arqiva radio MTS

Likely to be attractive package but potential
purchasers may be drawn by MUXes and may not
compete actively in MTS. BBC may object to
transfer of its radio MTS contracts.
More likely to be sustainable competitor but
severe customer concerns likely from BBC and
others also a potential DSO impact.
Involves creating a MTS only business to compete
against a vertically integrated Arqiva. More
stringent regulation likely to be required to
maintain viability.
Issues common to the above
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Best available solution?