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UK jihadist Imran Khawaja jailed

Written By Unknown on Jumat, 06 Februari 2015 | 19.12

6 February 2015 Last updated at 12:10

A British jihadist who fled to Syria and joined a militant group with links to so-called Islamic State has been given a 12-year custodial sentence.

Imran Khawaja, from west London, spent six months in Syria, during which he was pictured posing with severed heads.

Khawaja, 27, was arrested in Dover last June after faking his death and trying to return to the UK undetected.

He admitted preparing for acts of terrorism, attending a camp, receiving training and possessing firearms.

In delivering his decision, judge Mr Justice Baker said Khawaja posed "a significant risk of serious harm" to the public. He will serve a minimum of eight years.

His cousin, Tahir Bhatti, from Watford in Hertfordshire was jailed for 21 months.

Bhatti had driven to Serbia to collect Khawaja and bring him back to the UK.


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EU leaders to press Putin on Ukraine

6 February 2015 Last updated at 11:19
James Reynolds reports from the embattled town of Debaltseve

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James Reynolds reports from Debaltseve, "a town almost too dangerous to live in"

French President Francois Hollande and German Chancellor Angela Merkel are due to hold talks in Moscow to try to end escalating fighting in east Ukraine.

Their meeting with President Vladimir Putin follows talks in Kiev, where a peace plan was presented, the details of which have not been released.

A temporary truce has reportedly begun to allow civilians to leave Debaltseve, at the heart of the current fighting.

Moscow is accused of arming pro-Russian separatists - a claim it denies.

Russia also rejects claims by Ukraine and the West that its regular troops are fighting alongside the rebels in the eastern Donetsk and Luhansk regions.

Clashes have left nearly 5,400 people dead since April, the UN says.

A September ceasefire, signed in Minsk in Belarus, has failed to stop the violence. Since then the rebels have seized more ground, raising alarm in Kiev and among Ukraine's backers.

Before departing for Moscow, Mr Hollande said the goal of his visit was not just a ceasefire, but a "comprehensive agreement".

Analysis: David Stern, BBC News, Kiev

This may not be the last attempt to try to find a peaceful solution to the hostilities in eastern Ukraine, but there is a sense that the door is closing fast.

On Thursday German Foreign Minister Frank-Walter Steinmeier said the West must see if there was still a chance to reach a negotiated settlement, before there was "complete loss of control" over the conflict. France's President Francois Hollande has said diplomacy cannot "go on indefinitely."

That Angela Merkel is travelling to Moscow can be seen as a positive sign - the German chancellor said she wouldn't meet with Vladimir Putin without the concrete prospect of progress.

But the roadblocks to a final peace - or even a lasting ceasefire - are formidable and many. Not least is the low level of trust among Ukrainian and Western officials for any promises coming from the Kremlin.

Mr Putin may be sincere in his peace proposals; or, many in Kiev and other capitals feel, he may just be buying time.

Ukraine will also dominate an annual multi-lateral security conference in Munich, and meetings between US Vice-President Joe Biden and top EU officials in Brussels. US Secretary of State John Kerry, who was also in Kiev, said the US wanted a diplomatic solution, but would not close its eyes to Russian aggression.

The fighting has intensified in recent weeks after a rebel offensive, and a temporary truce was declared in Debaltseve on Friday, where Ukrainian forces are fighting to hold the town against surrounding rebels.

Convoys of buses were seen heading to the town on Friday to evacuate civilians who have been forced to shelter underground from the bombing.

PM Arseniy Yatsenyuk offered his glasses to Putin

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PM Arseniy Yatsenyuk said it was "crystal clear" Russian soldiers were in Ukraine, and offered to lend Mr Putin his glasses

They were escorted by monitors from the OSCE security watchdog, reported Reuters news agency.

Washington is considering Ukrainian pleas for better weaponry to fend off the rebels, raising European fears of an escalation in the conflict and spurring the latest peace bid.

Mr Holland and Mrs Merkel are due to meet Mr Putin in Moscow at about 17:00 local time (14:00 GMT).

On Thursday, the two leaders examined the plan with Ukrainian President Petro Poroshenko, without releasing any details.

Major questions any plan would have to address include the route of any new ceasefire line - given the rebel advances of recent weeks - how to enforce it, and the future status of the conflict zone, says the BBC's Sarah Rainsford in Moscow.

Municipal officials tour a residential block in Donetsk to assess the damage caused by what locals said was a shelling

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Olga Ivshina reports: "The frequency of indiscriminate shelling of civilian areas in Donetsk is increasing"

Moscow says it is ready for "constructive dialogue" - though still denying any direct role in the conflict - while Kiev insists above all that Ukraine must remain united, our correspondent says.

Ukrainian Foreign Minister Pavlo Klimkin tweeted late on Thursday: "Good mtg of Normandy Troika. Minsk agts [agreements]- roadmap to peace&territorial integrity of Ukraine. Specific steps 2 ensure implementation discussed."

A spokesman for the Kremlin said Mr Putin would discuss "the fastest possible end to the civil war in south-eastern Ukraine".

Some 1.2 million Ukrainians have fled their homes since last April, when the rebels seized a big swathe of the Luhansk and Donetsk regions following Russia's annexation of Crimea.

Are you in eastern Ukraine? Have you been affected by events? Email your experiences to haveyoursay@bbc.co.uk

Have your say


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GCHQ intelligence sharing 'unlawful'

6 February 2015 Last updated at 11:34

UK agency GCHQ's sharing of intelligence gathered by US mass surveillance programmes was unlawful, a tribunal has ruled.

The Investigatory Powers Tribunal (IPT) said the intelligence sharing regime between the agency and America's National Security Agency did not comply with human rights law until December.

The IPT cited a lack of transparency.

It is the first time the tribunal has ruled against an intelligence agency in its 15-year history.

It follows a ruling in December that the current system of UK intelligence collection did not breach the European Convention of Human Rights.

But the tribunal ruled that the public disclosure of two paragraphs of additional detail was essential to make the public regime "sufficiently foreseeable".

The agency is now compliant, the tribunal said.

Campaign groups Privacy International and Liberty were among those who made the initial complaint.

'Violated rights'

"We now know that, by keeping the public in the dark about their secret dealings with the National Security Agency, GCHQ acted unlawfully and violated our rights," said James Welch, legal director for Liberty.

"The tribunal believes the limited safeguards revealed during last year's legal proceedings are an adequate protection of our privacy.

"We disagree, and will be taking our fight to the European Court of Human Rights."

Eric King, deputy director of Privacy International, said: "We must not allow agencies to continue justifying mass surveillance programs using secret interpretations of secret laws."

He said the ruling was a "vindication" of the actions of Edward Snowden.

This case followed revelations by the former US intelligence analyst Mr Snowden about UK and US surveillance practices.


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Poundland seeks to buy 99p Stores

6 February 2015 Last updated at 11:42 By Tom Espiner Business reporter

Budget retailer Poundland has said it wants to buy 99p Stores for £55m, subject to approval by competition authorities.

The two firms have signed a conditional deal for £47.5m in cash and £7.5m in shares.

The sale, should it go through, includes 99p Stores' network of 251 shops, which trade as 99p Stores and Family Bargains.

Discounters in the UK have been taking market share from supermarkets.

Poundland-branded

Over time, 99p Stores will be converted to Poundland shops, a spokeswoman for the firm said. The deal is subject to approval by the Competition and Markets Authority (CMA).

The firm floated in March with an initial offer price of 300p per share. On Thursday, Poundland shares closed at 357.8p.

Poundland shares rose over 10% in mid-morning trading on Friday to 396.5p.

Continue reading the main story

Poundland chief executive Jim McCarthy said: "Through working together, Poundland will improve choice, value and service for 99p Stores' customers, bringing Poundland's proven know-how and range to 99p Stores."

Since 1990, Poundland has opened almost 600 shops in the UK, Ireland and Spain, and plans to open 16 new shops per year for the next two years in the UK and Ireland.

It trades as Poundland in the UK, and Dealz in Ireland and Spain.

Southern expansion

Independent retail analyst Nick Bubb said the deal would ease Poundland's effort to expand in the south of England.

"Having always said that it wasn't interested in buying out its aggressive but smaller rival 99p Stores ... as it came south, Poundland has decided that it is better to deal with the nuisance by pursuing a path of 'consolidation' and buying the company," he said.

Nevertheless, because of the way the shops overlap, Mr Bubb said the Competition and Markets Authority (CMA) could take up to two months to decide on whether the takeover should be allowed to proceed.

He said Poundland's proposed £7.5m share sale, to fund the "relatively modest" £55m acquisition, will be "up in the air for some time" due to the CMA scrutiny.

In a research note, US bank Citi said 99p stores had sales of £370m in the year to February 2014, but that its underlying earnings suggested "very thin" profit margins compared with Poundland.

In November, Poundland reported a 12% rise in half-year profits to £9.3m.

Analysis

BBC business correspondent Jonty Bloom

Pound shops face a continual struggle to keep prices down, after all, inflation means that a pound doesn't go as far as it did. So how do they do it?

Buying up stock from bankrupt companies was a very successful move during the downturn, but not so easy now. Also they search out products that have been redesigned, are coming to the end of their shelf life, and have been made for different markets where they didn't sell; they are all available at much lower prices.

And there are companies importing and making cheap jewellery, hair accessories, plastic flowers, toys, stationery and a thousand other things, all for under a pound. Many are made in Yiwu, a city in China that specialises in the pound shop market.

Other techniques include, continually reducing the size of products rather than raising the cost, so fewer biscuits in a packet or smaller shampoo bottles.

But the margins are still very tight as highlighted by the savings planned by Poundland, which is buying 99p Stores. Handing out all those 1p pieces will end and of course prices will rise by a penny.

Pound-shop boom

According to the Fung Business Intelligence Centre (FBIC), pound shops have boomed in the UK, mirroring the rise of discounters such as Aldi and Lidl.

"The low-price, no-frills formula has found particular resonance in Britain's era of sluggish economic growth," said FBIC head of global retail and technology Deborah Weinswig.

Nina Rahmatallah of marketing consultants Added Value said that "consumer behaviours adopted during the downturn, such as shopping for cheap items at stores like Poundland, have stuck."

She said Poundland faced a challenge in "ensuring customers continue to shop there as the economy grows ever stronger".


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Doctor guilty of indecent assaults

6 February 2015 Last updated at 12:07

Former doctor Michael Salmon has been found guilty of indecently assaulting girls at a hospital where Jimmy Savile abused patients.

The 79-year-old was found guilty of nine indecent assaults and two rapes carried out against six girls at Stoke Mandeville Hospital in Buckinghamshire.

Reading Crown Court heard the attacks took place between 1973 and 1988.

He was struck off the medical register after admitting indecent assault against female patients in 1991.

The court heard Salmon carried out many of his attacks behind a screen in his consulting room, while his victim's parents waited, believing he was completing a medical examination. One of the rapes he was convicted of too place at his home.

Although he worked at Stoke Mandeville while Jimmy Savile abused patients at the hospital, their offending is not believed to be linked, jurors heard.


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Bin lorry driver cannot recall crash

Written By Unknown on Kamis, 05 Februari 2015 | 19.12

5 February 2015 Last updated at 11:08

The driver of a council bin lorry which careered out of control in Glasgow city centre, killing six people, has said he has no memory of the crash.

Harry Clarke, 58, told the Daily Record newspaper that he understood bereaved families and those who were injured wanted answers.

But he said he had been unconscious, and could not remember anything.

He said he had no heart problems before the crash on 22 December and his health had not improved much since then.

The lorry went out of control on Queen Street and crashed in George Square.

In a statement published by the newspaper, Mr Clarke said: "I want to be able to reach out to the injured and families of those who died on December 22.

Fragile health

"I can't really think how to express myself. I just want all the families and the public to know that I appreciate all the support they have given me through the newspapers and also the cards people have sent me.

"I've felt awful not speaking out before now but I was in hospital and my health hasn't really improved much at all."

Mr Clarke said he was not speaking out now to get sympathy for himself.

Continue reading the main story

I will never know what happened other than other people telling me what they saw. Every day is a struggle.""

End Quote Harry Clark Glasgow bin lorry crash driver

"I don't want that, but I don't want the families to think I have been hiding, I haven't. I am just anxious that I don't upset anyone.

"Now I feel I need to make a statement to ensure everyone knows I grieve for everyone involved in the accident.

"I understand a lot of people want to know what happened that day. I wish I could tell you but I can't. I had never had anything wrong with my heart until that day."

Mr Clarke said he was aware that speaking out without being able to explain why the crash happened would not help the families of those who died.

But he said: "I just want all the families of injured or deceased victims to know I can't remember anything - I wish I could, but I was unconscious.

"I have racked my brain to try to remember but I can't. I will never know what happened other than other people telling me what they saw. Every day is a struggle."

Mr Clarke said he had worked all his life and "just lived a normal life".

"Nothing will ever be normal for me or any of the families ever again," he said.

"I think of everyone every minute of every day."

The Glasgow City Council bin lorry driver said he and his daughter appreciated that the media had not hounded him.

He added: "And while I am speaking out today, it is for all those affected and not about me.

"We all just want to grieve in private and hopefully everyone's privacy can be maintained."

The six people who died in the crash were teacher Stephenie Tait, 29, from Glasgow; student Erin McQuade, 18, and her grandparents Lorraine, 69, and Jack Sweeney, 68, from Dumbarton, West Dunbartonshire; tax worker Jacqueline Morton, 51, from Glasgow; and 52-year-old Gillian Ewing, from Edinburgh.

The 10 people injured in the crash have since been discharged from hospital.

Police investigating the crash have submitted their initial report to prosecutors.

The Crown Office said it would issue an update by the end of February on timescales for any criminal proceedings or a fatal accident inquiry.


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Tesco investigated by new regulator

5 February 2015 Last updated at 11:23

Tesco is to face another investigation into its relations with suppliers, amid concerns that it breached the Groceries Supply Code of Practice.

The Groceries Code Adjudicator (GCA) joins the Serious Fraud Office and the Financial Reporting Council in investigating the supermarket chain.

The adjudicator, Christine Tacon, said she had "reasonable suspicion" that the code had been breached.

However, the GCA will not be able to fine Tesco for past offences.

In a statement, Business Secretary Vince Cable said: "Last week I secured the final agreement in government to proceed with legislation to enable the regulator to impose hefty fines for those supermarkets found guilty of mistreating suppliers."

These penalties on large retailers could total up to 1% of their annual UK turnover.

But Ms Tacon told the BBC that despite this legislation, she could not force Tesco to pay a penalty, because the offences would have been committed before she was given the power to impose fines.

Christine Tacon, groceries code adjudicator

  • Named by the government as the first supermarket ombudsman in January 2013
  • The role grants the power to fine misbehaving supermarkets
  • The post was recommended by the Competition Commission in 2008 to settle disputes between grocers
  • Makes sure supermarkets follow the groceries supply code of practice
  • Ran the Co-operative's farming unit for 11 years

Tesco: Where it went wrong

The GCA will look into Tesco's profits and delays in payments to suppliers and the investigation is expected to take up to nine months.

Mr Cable said: "This is an historic day for the groceries code adjudicator and shows we have created a regulator that has real teeth.

I have also agreed an increase of almost 40% in the adjudicator's funding for the coming year, so that it can carry out more of its important work.

Now that a formal investigation has been launched, I would encourage anyone with any evidence of wrongdoing to come forward and to be confident of being able to do so confidentially, as their anonymity will be protected by law."

Ms Tacon said: "This is the first investigation I have launched and it is a significant step for the GCA.

"I have applied the GCA published prioritisation principles to each of the practices under consideration and have evidence that they were not isolated incidents, each involving a number of suppliers and significant sums of money."

Analysis: Kamal Ahmed, business editor

One frustration Christine Tacon will be feeling this morning is over her inability to fine Tesco - or any other supermarket for that matter - if she finds that supplier regulations have been breached in the past.

As Panorama revealed last month, she first applied for powers to fine supermarkets up to 1% of UK revenues in December 2013. In Tesco's case, that would mean a figure well north of £400m.

There was then a delay of over a year before the government finally acted to grant those powers last month - two weeks after the BBC revealed the delay.

Vince Cable blamed inertia in the Treasury for the snail's pace approach.

Ms Tacon cannot use her fining powers retrospectively, so is left with "legally binding recommendations" and naming and shaming in her arsenal of sanctions against Tesco if wrongdoing is found.

Ms Tacon has called for evidence to be submitted by 3 April.

A Tesco spokesperson said: "We have worked closely with the office of the adjudicator since its creation to put in place strong compliance processes.

"An internal review we carried out and shared with the GCA identified some areas of concern.

"We have taken action to strengthen compliance and, as we have announced, we are changing the way we work with suppliers."

Clive Black, an analyst at Shore Capital stockbrokers, told the BBC that the GCA investigation "feels very much like self-justification by an organisation that has talked much but not actually done anything of note in practical terms to our minds".

Chris Brook-Carter, editor in chief at Retail Week said: "This is not great news in terms of [Tesco's] reputation, but that reputation took such a dent last year."

He added: "I'm not sure that even if they are found guilty it is going to put them in much worse a position at the moment."

Analysis: Mark Broad, business producer

Despite being set up more than 18 months ago the Groceries Code Adjudicator still does not have the power to fine retailers that break the code.

A Whitehall blockage has delayed the necessary legislation, meaning that if Tesco is found guilty the punishment could be as little as issuing an apology in the national press.

If the legislation had been passed and a supermarket was found guilty, it could be facing multi-million-pound fines.

Unlike other industry regulators, the GCA is a modest organisation - it has just five staff.

The head of the organisation, Christine Tacon, works a three-day week.

What's more, many supermarket suppliers say they fear going to the GCA to complain as they depend on the major retailers for their survival.

The GCA hardly sounds like a regulator with teeth.

Have you supplied Tesco? Have you been affected by the issues raised in this story? You can email haveyoursay@bbc.co.uk with your experience. Please include a telephone number if you are willing to be contacted by a BBC journalist.

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MPs urge Britain to step up IS fight

5 February 2015 Last updated at 10:59

The UK's role in fighting Islamic State extremists is "strikingly modest" and should be stepped up, MPs have said.

The Defence Select Committee found the UK had carried out 6% of coalition air strikes against the jihadist group and said it was "surprised and deeply concerned" it was not doing more.

But it stressed it was not in favour of deploying combat forces to battle IS.

The government said military action was just part of "comprehensive" action by the international coalition.

In their committee report, the MPs said the "nightmare" of a jihadist state in parts of Iraq and Syria had been realised "in an extreme form".

The MPs suggest the UK could step up its contribution to the air campaign, and perhaps use more special forces.

They also want more effort from the UK to develop its own analysis and strategy, rather than just "sign-up" to the American campaign.

'Boots on the ground'

The MPs said the UK "can and should be playing a greater role" in fighting it, adding that "officials, ministers, and officers have failed to set out a clear military strategy".

In addition, the MPs are calling on the UK to respond to Iraqi requests for more training, including to counter Improvised Explosive Devices (IEDs) and to help restructure the Iraqi Kurdish forces who are taking on IS fighters.

Deputy prime minister Nick Clegg gave a cautious reaction to the report, saying there was "no way we in the UK.. or in the rest of the world altogether will somehow be able to fix the bloodshed in Syria or fix the bloodshed in Iraq" by "charging in".

Speaking on his weekly LBC phone-in Mr Clegg said that in Iraq a reconciliation of the "deep-seated tensions" between Sunni and Shia communities was required.

Analysis by World Affairs Correspondent Nick Childs

The MPs contrast what they see as the level of political rhetoric on the threat posed by IS with the level of effort being put in now to combating it, but also how limited that is relative to the scale of the military campaign last time.

But in Washington and London, officials argue that this is a different kind of enemy this time, and that they have learned the lessons of last time. Hence, for example, a campaign of air strikes that is not on the same scale as previous ones.

There is also an insistence that the air campaign is only a small part of the equation. And there is general agreement that Western combat boots on the ground are not a good idea.

And it is acknowledged that that is partly because of deep public and political reluctance in the West.

Mr Clegg said he did not believe the UK's commitment could be measured "according to the number of boots on the ground in Baghdad" but there was role for the UK in seeking to keep IS "in check" in the Middle East.

'Significant threat'

IS has taken control of a large number of areas and been behind acts of brutality, including the beheadings of British hostages.

The report said IS was the "most significant threat" to international security to have emerged from the Middle East "in decades".

RAF jets began carrying out combat missions over Iraq in September, after MPs had backed action against IS in that country.

However, Parliament was not asked to vote on military missions against IS in Syria.

The UK's military commitment includes eight Tornado jets, a Reaper drone, transport aircraft and HMS Dauntless, an air defence destroyer.

On a visit to Iraq in December, members of the committee discovered there were only three UK military personnel outside the Kurdish regions of the country, compared with 400 Australians, 280 Italians and 300 Spanish.

They also found there were no UK personnel on the ground with "deep expertise in the tribes, or politics of Iraq".

'Terrorist campaign'

Committee chairman Rory Stewart said IS had contributed to "the displacement of millions, destabilising and threatening neighbouring states, and providing safe haven to an estimated 20,000 foreign fighters, many dedicated to an international terrorist campaign".

"Yet, the role that the UK is playing in combating it, is strikingly modest," he added.

Speaking to BBC Radio 4's Today programme, he said: "I think it would be a real pity if Britain lurched from engagement to isolation. We must find a way as a global power of playing a responsible role."

The committee said diplomatic involvement with Turkey, Saudi Arabia and Iran should be "significantly increased", adding there was "considerable scope for special forces operations", within legal constraints.

A government spokesman said ministers had been "absolutely clear" on the objectives for Iraq and had set these out in the Commons "on a number of occasions".

"We have carried out the second highest number of air strikes among coalition partners, gifted weapons and trained Iraqi security forces, including the Peshmerga forces, in how to use them, are gifting a further 1,000 counter-IED detectors and are delivering various strategic and skills training programme," he said.

The "comprehensive approach" being taken by the international coalition against IS also included tackling its sources of money and foreign fighters, he added.

The MPs' report comes as a document, posted online by female supporters of IS, describes the role for women within the jihadist group.

The paper, translated into English by UK think tank the Quilliam Foundation, says it is legitimate for girls to be married at the age of nine and that women should be educated from the age of seven to 15 only.

Women, including an estimated 50 from Britain, are believed to account for about 10% of the thousands of foreign recruits to join IS.


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BT to buy mobile firm EE for £12.5bn

5 February 2015 Last updated at 12:01

Telecoms group BT has bought the mobile operator EE for £12.5bn.

The takeover creates a communications giant covering fixed-line phones, broadband, mobile and TV. Existing EE shareholders Orange and Deutsche Telekom will sell 100% of their shares.

Deutsche Telekom will hold 12% in the new combined business and have a seat on the board.

Orange will receive a 4% stake, as well as about £3.4bn in cash.

The deal combines BT's 10 million retail customers and EE' 24.5 million direct mobile subscribers.

BT shares rose more than 5% on the London market to their highest level since 2001, the year the company withdrew from mobile operations by spinning of O2.

BT says it plans to raise £1bn through a placing of new shares to fund the deal.

Continue reading the main story

It said in a statement: "The combination of EE and BT will provide customers with innovative, seamless services that combine the power of fibre broadband with wi-fi and advanced mobile capabilities."

Competition issues

EE leads the market in 4G, the fastest mobile bandwidth. It said on Thursday its 4G customer base had risen to 7.7 million subscribers.

EE chief executive Olaf Swantee said: "Today's announcement will ensure the UK remains at the forefront of the mobile revolution, bringing even more innovation and investment in world leading connectivity for our customers."

However, rivals TalkTalk and Vodafone have already said BT is grabbing too much of the market and have called for regulators to force BT to spin off its Openreach fixed line division, which enables other telecoms companies to access its network.

Vodafone chief executive Vittorio Colao said: "Ideally, a structural separation of Openreach would be optimal."

Mr Patterson said he did not expect competition authorities to impose stringent remedies and the deal would need to be scrutinised in Britain, rather than Brussels.

Savings

BT says that within four years, the deal will be saving it £360m a year in terms of operating costs and capital investment.

It added that by combining the two businesses, it should be able to generate an extra £1.6bn a year in sales.

BT chief executive Gavin Patterson said: "This is a major milestone for BT as it will allow us to accelerate our mobility plans and increase our investment in them."

He said the money being spent on the deal did not affect its plans ahead of the multi-billion pound Premier League rights auction, where it is in tough competition with rival Sky.

The mobile phone market is expected to consolidate further. Hutchison Whampoa, which owns rival Three, is said to be in talks to buy O2.

There has been speculation that Virgin may tie up with Vodafone.

Analysis: Matthew Wall, Business reporter

BT's purchase of mobile operator EE is part of its grand plan to become a digital publisher along the lines of Netflix, Amazon and Sky, not just a network provider.

It will now be able to distribute its content and services via TV, desktop and mobile, so that customers can access what they want, when and however they want it. Add those three services to BT's fixed-line operation, and the company now becomes a big player in what is called "quad-play".

As our smartphone screens get bigger, we're watching more video and TV on the move, and these big files need fast download speeds. So EE's lead in the high-speed 4G mobile space gives BT a big boost.

And as competition for eyeballs in a multimedia, on-demand world intensifies, an extra 7.7 million customers to sell stuff to always helps. Rooting out duplication in the combined companies could save hundreds of millions a year, says BT.

Will those savings be passed on to customers in the form of lower bills? Almost certainly, if BT is serious about becoming a global media powerhouse.

Vodafone is to offer broadband services to UK households from this spring.

But at present, it is still fighting to return to growth. On Thursday, it reported that UK revenues showed a slight rise (0.9%) in the last three months of 2014, while European sales were still declining.

Meanwhile, Sky has also announced the launch of its own mobile service, through a deal with O2's network.

Dan Ridsdale, analyst at Edison Investment Research, said: "In the space of a few months, the UK telecoms landscape has changed enormously. As the majors fill in the gaps in their offerings, competition to offer multi-play bundles is going to step up significantly.

"Whether this will be beneficial for consumers is a very different question. The bundling of services makes it much more difficult to compare pricing, while more premium TV content is likely to move away from free to air."

The BT-EE deal is expected to be finalised by March next year, subject to approval by shareholders of BT and scrutiny from the Competition and Markets Authority.


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Europe leaders in Ukraine peace bid

5 February 2015 Last updated at 11:52

French President Francois Hollande says he is heading to Ukraine with German Chancellor Angela Merkel to present a new peace initiative.

He said they will put forward the new plan before meeting Russian President Vladimir Putin in Moscow on Friday.

US Secretary of State John Kerry also landed in Kiev for talks on Thursday.

The diplomatic push to end the conflict, which has killed more than 5,000 people since last April, comes amid intensified fighting.

"Ukraine is at war. Heavy weapons are being used and civilians are being killed daily," Mr Hollande said at a news conference on Thursday.

He said the new peace proposal was based on the "territorial integrity" of Ukraine, which could be "acceptable to all".

A spokesman for the Kremlin confirmed that President Putin would meet with the two European leaders on Friday to discuss "the fastest possible end to the civil war in south eastern Ukraine".

Ukraine and the West have accused Russia of arming rebels in eastern Ukraine and sending regular troops across the border but Russia denies this.

Mr Kerry is in Kiev to hold talks with President Petro Poroshenko and Prime Minister Arseniy Yatsenyuk as the US considers whether to send weapons to help Ukraine fight the pro-Russian rebels.

The US has so far only provided "non-lethal" assistance to Ukraine.

But rather than arming Ukraine, Mr Hollande said there was another option: "That is the option of diplomacy - but that cannot go on indefinitely."


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