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The long-awaited confirmation of their union sees ntl acquiring Telewest, to create the UK's second largest communications company after BT.

The deal itself sees Telewest valued at approximately $6 billion and Telewest shareholders will receive $16.25 in cash plus 0.115 shares of ntl for each Telewest share.

UK assets for the merger include 2.5 million broadband subscribers, 3.3 million pay TV subscribers and 4.3 million telephone subscribers.

The key factor is the nationwide provision of so-called triple-play services, i.e. that cable-connected consumers can be charged for TV, phone and Internet communications.

While the benefits for the PLC are clear - their local access networks do not overlap - the advantages for consumers are less clear - one company now has a monopoly over cable communications. Of course broadband competiton in the form of ADSL is provided by a number of competitors.

'Underpinned by a national strategy and increased scale and reach, this transaction positions the enlarged company for greater success than either company could have achieved alone,' stated the chairman of ntl, James Mooney. 'The company will have additional resources to roll out new product offerings - such as HDTV, VoD and VoIP - across its footprint. This pro-competitive combination will provide customers with improved access to competitively priced and flexible communication and

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entertainment services.'

The merger of the remaining two main players has long been seen as an inevitability. As far back as 2003 rumours were circulating of an imminent union - Telewest revival renews NTL merger rumours . Earlier in this summer - NTL and Telewest merger is back on - the two companies announced they were finalising who would handle the details of the $6bn deal.

Both companies went into bankruptcy protection in the US in 2002 after incurring billions of dollars worth of debt as they bought up the UK cable franchises. The merger was then on hold until both companies came out of bankruptcy protection and relisted on the Nasdaq.

The deal marks the end of the gradual consolidation of the network of UK cable companies. When created in the early eighties, their explicit remit was the provision of local services. Over time, however, the provision of experimental small-scale interactive television services gave way to the more mundane provision of large-scale telecom services, particularly driven in the later stages by the potential for (relatively) high speed broadband.

Challenging this charter at the time, in an attempt to control the next generation of communication networking, BT offered to provide a nationwide fibe-optic network as long as it remained within BT's control. The government of the time favoured competition and tried to create a multi-company market. Gradually, however, economic necessities saw the cable network consolidate into just two companies. And now it is one.

'This is a transforming transaction for the UK cable industry,' commented ntl CEO Simon Duffy. 'It marks not just the culmination of a decade of consolidation but, more importantly, the creation of a new competitive force in the communications and entertainment sectors in the UK.'

Both boards have agreed the deal, but it is expected to be completed early next year, subject to UK regulatory approval.