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Vodafone Launches Wireline Services For Businesses; Airtel Partnership?

By Brindaalakshmi K & Nikhil Pahwa So Vodafone India is getting to the wireline services business - Vodafone Business Services (VBS), the enterprise arm of Vodafone India, has entered the wireline segment in the country, by launching wireline services for businesses. It plans to offer this to enterprises along with its mobility and M2M (Machine-to-machine) solutions. What's interesting is that Vodafone claims to have a wireline infrastructure that includes 120,000 kms of fibre backbone, over 350 PoPs across 130 cities. Wireline services are a tiny fraction of Vodafone India's revenues, and less than 5% of its India topline, and Vodafone didn't report any revenues from the Fixed Line business in the previous quarter: Airtel Partnership? This announcement comes at a time when the 2G spectrum auction in India abysmally low, the telecom ecosystem is emerging from a hypercompetitive, minimal pricing scenario, and most importantly, Bharti Airtel has announced plans to set up a cross-operator fixed line entity, for which it will seek to partner with other telecom operators. For expanding its wireline business, and with India not unbundling the last mile, Vodafone will need fixed line infrastructure. A partnership with Airtel is natural, and in our opinion, imminent. Vodafone and Airtel are already JV partners in Indus Towers, along with Idea Cellular. This partnership will allow sharing of the cost of network expansion. Newly Launched Services On Vodafone Fixed Line The newly launched wireline services of Vodafone Business Services will include services such as: Internet Leased Lines: Vodafone’s Internet Leased Lines aims to…

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