Vodafone Buys Into Enterprise, Broadband

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Vodafone acquires Cable & Wireless Worldwide for £1 billion, in a bid to get more enterprise business while running a fixed line network. 

Vodafone CWWWith a history starting from the 19th century (formed from a number of international telegraph assets), C&W has recently fallen into hard times, going through 3 CEOs since starting a restructuring process in 2010. 

The acquisition will turn Vodafone the 2nd biggest operator in the UK, with annual revenues reaching £7bn. Perhaps more importantly it will also open the enterprise market for Vodafone-- enterprise networking services form the core of current C&W business. 

As Vodafone itself puts it, "“the acquisition of Cable & Wireless Worldwide creates a leading integrated player in the enterprise segment of the UK communications market and brings attractive cost savings to our UK and international operations."

Around one-third of C&W revenues come from international operations-- with territories covering the UK, EMEA, India, Asia Pacific and N. America. It currently operates as a wholesale carrier, allowing other operators to use its network for broadband delivery. Will Vodafone retain such a business model or use the network to launch an own broadband operation?

Go Vodafone Acquires Cable & Wireless Worldwide