The head of Vodafone’s UK business has said it has looked at potential acquisition targets in the UK such as fixed-line challenger TalkTalk as it considers its market position in light of consolidation deals being agreed among its rivals.
Vodafone is…
The head of Vodafone’s UK business has said it has looked at potential acquisition targets in the UK such as fixed-line challenger TalkTalk as it considers its market position in light of consolidation deals being agreed among its rivals.
Vodafone is set to become the UK’s smallest mobile network operator after Hutchison Whampoa moved to merge O2 with its local unit, Three, while fixed incumbent BT is buying EE.
Speaking to the Financial Times, Jeroen Hoencamp, CEO of Vodafone’s British subsidiary, said that given the movements in the market his company was looking at its strategic options, including acquisitions, on an ongoing basis.
Vodafone has already acquired a fixed business in the UK in the shape of enterprise operator Cable & Wireless Worldwide, and has followed a fixed-mobile convergence strategy in other major European markets. In Germany it bought Kabel Deutschland and in Spain it acquired Ono.
Hoencamp also lobbied for tough remedies to be imposed on BT’s £12.5bn takeover of EE. He was quoted as saying BT and EE will hold 45% of all available spectrum in the UK and that some of that should be divested. He also stressed that Vodafone would need fair access to BT’s wholesale broadband network, and at a reasonable cost.
In addition to BT/EE and Hutchison/O2, Vodafone is also set to face competition from Sky and TalkTalk which have both confirmed plans to launch MVNOs. Hoencamp said that in the short term Vodafone would be looking to improve its voice services and invest in its network, according to the article.
The executive also raised the issue of network sharing. Vodafone has an agreement with O2, whereas Hutchison shares with EE. There is a costly break clause in the Vodafone/O2 sharing agreement, the report said. It is not clear which route Hutchison will take.
