Cable firm NTL and Virgin Mobile have announced they are engaged in merger talks. NTL has reportedly put in an offer for the mobile network which will see its majority owner, Branson's Virgin Group, getting an initial cash payment and equity in the cable firm. T Mobile, who actually provide the mobile network Virgin use, are reportedly in favour of the merger.
NTL's decision to acquire a mobile network is most likely in response to BSkyB's confirmation that it is looking to acquire internet and telco companies so that it can offer combined TV, internet and fixed-line telephone packages. NTL, who already offer customers those three services in one package, would be able to go one better by adding mobile services into the mix.