Business News
Vodafone snaps up broadband arms
Mobile
phone firm Vodafone has expanded its interest in the European broadband
market, spending 537m on businesses in Spain and Italy
Story from BBC
NEWS
The UK-based telecoms firm is buying the divisions
- which provide fixed-line telephone and broadband services - from
Sweden's Tele2. Combined, the Spanish and Italian units have about
three million customers. Vodafone said it would benefit from "attractive
high growth" in broadband use in the two countries. The deal
meant it immediately had the infrastructure it needed in place, the
company said.
'Low penetration'
About 44% of Italian households are tipped to have broadband by the
end of the year - up from 30% two years ago, the company said, with
Spanish growth expected to have risen from 33% to 57% in the same
period.
Vodafone chief executive Arun Sarin said the deal was "consistent
with our strategy of meeting our customers' total communication needs".
"It will generate substantial time to market benefits in Italy
and Spain where low broadband penetration and the market structure
make ownership of fixed broadband assets attractive," he added.
"We have now established a clear route to delivering fixed broadband
service in each of our major European markets."
Earlier this year, Vodafone made a move into the UK broadband market,
launching its At Home service using BT Wholesale's broadband network.
(Published: 10.10.2007.)
Send your comments
