Vodafone in £537m broadband deal

Oct 9 2007 by Iain Laing, The Journal

VODAFONE has stepped up its push into broadband by agreeing a £537m deal for two firms with more than three million customers.

Fixed-line operators Tele2 Italy and Tele2 Spain – owned by Tele2 Group – should provide Vodafone with opportunities for growth as the UK-based mobile phone company said both countries had low broadband penetration. In a bid to combat saturated mobile phone markets, Vodafone has begun offering customers broadband and landline services alongside mobile calls.

Around 44% of households in Italy are expected to have broadband services by the end of the year, up from 30% two years ago. The figure in Spain is 57%, compared with 33% two years ago. Vodafone chief executive Arun Sarin said: “This acquisition is consistent with our strategy of meeting our customers’ total communications needs.

“It will generate substantial time to market benefits in Italy and Spain, where low broadband penetration and market structure make ownership of fixed broadband assets attractive.”