Vodafone was in talks last year with John Malone’s Liberty about asset swaps or other tie-ups in Europe, which potentially would have enabled allow both to offer a richer package of TV, broadband and mobile in countries like Britain and Germany.
Press releases from Netherlands have revealed positive impacts on a joint venture laid forward by Vodafone Group PLC and Liberty Global PLC. The joint venture is likely to come up with a positive outcome alongside boosting up company’s competitiveness by bring in second-largest integrated player in Dutch telecommunications market, as per Moody’s Investors Service.
“The creation of a second integrated player will increase competitive pressure on smaller mobile-centric players in the Dutch market.” – Analyst, Ivan Palacios
He also stated that in comparison to similar fixed-to-mobile deals in European Pacific, the saving resulting from the deal is at a higher edge.
Last week, the telecommunication company announced to pay off approx. US$ 1.1 billion (i.e. EUR 1 billion) to Europe-focused Liberty Global as per a deal’s segment for business union.
According to what Liberty claims, the 50-50 joint venture would cost approx. €3.5 billion – on giving proper consideration to combined revenue and capital expenditure, after cost integration.
“If we work well with Liberty of course it’s much better than if we don’t, and if we get used to our own different cultures, it is of course enrichment and a positive. “We are getting a decent amount of customers each month, and when we are ready we will launch our own content-rich TV offer. For the time being we have not reached an agreement with BT.” – Vodafone’s Chief Executive Vittorio Colao.
