Vodafone IS talking to Virgin Media daddy Liberty Global

Vodafone+Virgin would probably be approved with minimal regulatory issues IF the BT+EE merger goes ahead.

I can't see Sky+Vodafone working as both businesses have significant market share and would lead to regulatory issues regardless of whether BT+EE is allowed.

I think Sky's best bet is to lobby for BT to sell off OpenReach so it is as close to neutral as possible while BT+EE vs Vodafone/Virgin vs Sky fight out the content delivery market for the UK.

The real loser in this is likely to be the TV companies that are already losing market share to other forms of content delivery.

And the consumer - less competition will probably be bad for the consumer as well.

BT+EE+TV = Quad play = dangerous to sky

Sky + O2 = quad play but only to try and cover BT

Oddly Virgin Media don't really feature in this battle between Sky ad BT.

VF risk being marginalised if they don't do something here. They either make a play to partner with sky (their former CW net could be attractive for cheap BB backhaul), or they join the Quad play battle by buying VM.

VF + VM quad play would be the only real challenger to BT's ambitions, but VF + sky would blow BT out of the TV & Mobile markets completely

ISP?

Some interesting angles here. Right now, Virgin has the contract to provide backhaul to MBNL, the combined Three+EE network operation, while Vodafone pools stuff with O2 under "Cornerstone" - with BT buying EE and Three buying O2, something there will have to change drastically. Hard to imagine BT continuing to buy in network backhaul from Virgin.

Right now, Virgin resell EE's mobile services: will they or BT be happy to continue that post takeover, or will Virgin be in the market for a new provider for their MVNO?

Vodafone owns both the old Bulldog/C&W LLU network and Demon - so either offloading that to Virgin, or taking over Virgin's leftover non-cable ISP operation to bolster their own size, could make sense.

Sky wouldn't make much sense, though. They just bought O2/Be's LLU network and customers, only to throw both assets in the bin: maybe they could repeat that with Demon/Bulldog, but they've only just started on their mobile reseller deal with O2. Virgin seems a much more sensible match overall.