European Internet Market Sees Major Developments

As the internet market in Europe continues to grow and evolve, several significant developments have taken place in recent times. World Online, a pan-European internet group, has acquired Bun.com, an internet service provider founded by News International last year. This strategic move marks a retreat for News International from internet service delivery, allowing them to focus on online content and e-commerce. Meanwhile, consumer groups have expressed concerns over the proposed merger between Time Warner and America Online, calling for regulators to intervene unless the deal includes guarantees that the combined company will open up its high-speed cable lines to other internet service providers.

Key Takeaways:

• World Online has acquired Bun.com, an internet service provider, in a move to expand its presence in the UK market.
• The purchase price of Bun.com was not disclosed, but it is part of World Online's aggressive drive to build a strong base in the UK.
• Consumer groups have called on regulators to block the proposed merger between Time Warner and America Online unless the deal is revised to include guarantees that the combined company will open up its high-speed cable lines to other ISPs.
• Shares in France Telecom rose sharply after the company announced plans to consider floating its internet activities, potentially valuing its internet service provider, Wanadoo, at over Euros 15bn.
• Bouygues, a French communications and construction group, is raising Euros 1.5bn to finance its telecoms and internet development, specifically to develop UMTS technology for third-generation mobile phones.
• French companies will soon be required to invest in networks to carry mobile services, including internet access.

Statistics:

• World Online is preparing for a Euros 12bn public offering.
• The proposed merger between Time Warner and America Online is worth multi-billions of dollars.
• Shares in France Telecom rose by an undisclosed amount after announcing plans to consider floating its internet activities.
• Wanadoo, led by France Telecom, is expected to have 2 million customers.
• Bouygues is raising Euros 1.5bn to finance its telecoms and internet development.

Sources:

• "World Online prepares for Euro 12bn IPO"
• "Murdoch retreats from ISP market"
• Bloomberg
• "Time Warner, AOL to Face U.S. Scrutiny Over Cable Market Access"
• "Shares in France Telecom rise sharply as it considers float of internet activities"
• France Telecom press release