CCS Insight Predicts 3 Will Buy O2 in 2014

CCS Insight Releases its Predictions for 2014 and Beyond

15 November 2013, London, UK — Following recent deals in Ireland and Austria, mobile network 3 will establish itself as a leading European operator by acquiring O2 from parent company Telefonica in 2014, according to predictions made today by media and telecoms analyst group, CCS Insight. With favourable regulatory conditions in the EU, Telefonica would sell its mobile business in a move to reduce its debts.

Shaun Collins, CEO and founder of CCS Insight, said: “2013 has been a year of massive shake ups within the technology and telecoms sector. Nokia and Microsoft, Verizon and Vodafone and of course, BlackBerry. Looking to the years ahead we expect this trend to continue. With various telecoms and technology giants under financial strain, the next few years should see yet more consolidation in this industry.”

The predictions, presented to customers during CCS Insight’s annual predictions event, forecast a frenetic few years ahead for businesses in the technology sector.

Here’s an overview of some of CCS Insight’s predictions for the telecoms and consumer technology industry:

Yahoo buys Flipboard and Pinterest in 2014

Yahoo will continue its acquisition spree in an effort to bolster its mobile presence. Since both Flipboard and Pinterest tally with Yahoo’s other media assets it will provide established services across iOS and Android to increase engagement and drive revenues by capitalising on mobile advertising.

Twitter buys Snapchat in 2014

Following its successful IPO, Twitter will use some of its newly raised cash to acquire Snapchat to bolster its offering with Vine.

France Telecom and Deutsche Telekom merge in 2015

After several partnership agreements, the operators agree to a union. The deal builds on the operators’ complementary network coverage and a device-purchasing joint venture. The move sets a precedent for other major mergers in European telecoms to challenge the likes of Verizon and China Mobile on the global stage.

Internet consumption and healthcare will be the main application of wearable technology by 2016

Users of wearable devices will consume the internet in new ways, leading to the “Internet on you”. The application of wearables in healthcare will also see significant development in the coming years, as they provide people greater control over the monitoring of medical conditions and personal well-being.

Public Wi-Fi usage in the UK will peak in 2015

The UK is set to become one of Europe’s most competitive markets for LTE, and strong uptake of 4G technology will make public Wi-Fi much less relevant. With EE reporting that 43% of its customers use less public Wi-Fi after signing up to 4G services, this trend will continue as 4G becomes the norm for consumers.

Speech-based user interfaces become mainstream by 2016

As the population grows older, interfaces that do not involve looking at text on a small screen will become essential. This trend complements the adoption of wearable technology, where text input is much more limited than on traditional mobile devices.

In 2015, a European Commission investigation will force the unbundling of one or more combinations of hardware, software and services

Companies like Amazon, Apple, Google and Microsoft offer a range of software and services that complement tightly integrated hardware. Some of these companies sell the hardware with little to no profit margin. CCS Insight predicts that after a lengthy investigation, the European Commission will conclude that in some cases such bundling is anticompetitive.

Predictions infographic. Click for larger version or PDF.

For CCS Insight’s predictions for the broadcast and media markets, please see here.

About CCS Insight

CCS Insight is a global telecommunications analyst company. It provides comprehensive services that are tailored to meet the needs of individual clients, helping them make sense of the connected world. Follow us on Twitter or learn more at

For further information contact:

Hugo Deacon
Harvard PR
+ 44 (0)20 7861 2842

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