Vodafone India has signed an agreement to acquire TRG Capital-owned YOU Broadband for around Rs 400 crore and is currently subjected to approval from the Foreign Investment Promotion Board, reports Economic Times. When contacted by MediaNama, Vodafone declined to comment on the development.
YOU Broadband claims to have around 3,000 km of optic fiber cables, and 6,000 km of last mile cables to homes across 12 cities including Mumbai, Bangalore, Gurgaon, and Chennai. It also claims to have collaborated with companies like Motorola, Avvaya, Commscope, Cisco to provide their services across the 12 cities they operate in.
Vodafone to merge its assets: In December last year, The Department of Telecom had given a green signal to Vodafone to merge four of its Indian entities (Vodafone East, Vodafone South, Vodafone Cellular and Vodafone Digilink) into Vodafone Mobile Services (VMS). The company is currently awaiting an approval of the High Court. Vodafone was also looking to merge Vodafone West and Vodafone Spacetel with Vodafone Services, for which it would need to submit Rs 1,950 crore.
MediaNama’s Take: Vodafone has been consistently holding on to the the top three position position shared by its competitors Airtel and Idea as well. These top players have already invested quiet a bit in rolling out 4G services in the country but Airtel stands out among them with a considerable broadband presence as well. The terms of agreement between Vodafone and You broadband are not clear as of now, but the deal would immensely work in Vodafone’s favor in pushing through the fiber internet category–something which is yet to be captured by the top three telcos.
Other updates from Vodafone
-This month, Vodafone and the Uttar Pradesh Power Corporation Limited (UPPCL), signed a partnership to allow consumers in the Uttar Pradesh (East) circle to pay their electricity bills through M-Pesa.
-In the same month, Vodafone India completed the first phase of its planned 4G rollout under the 1800 MHz band with the launch of its 4G service in Mumbai.
– In February Vodafone India said that it witnessed a 56% increase in 3G connections from 16.6 million connection in Q3 FY15 to about 25.9 million 3G Internet connections for the quarter ended December 31, 2015.
-Telecom service provider Vodafone had announced that it would invest Rs 13,000 crore for network expansion, capacity augmentation, and to introduce new business initiatives in India.
Recent deals and talks in telecom
–We reported last week that Reliance Communications which had earlier entered into a non-binding but exclusive discussion with Aircel to merge its wireless business with the latter, extended the exclusivity period by 60 days.
-In January, Telecom operators RCOM and Reliance Jio entered into a strategic partnership to share spectrum to provide LTE services across 17 circles, the Anil Ambani-led comapny said in a notification on the BSE.