Fixed and mobile businesses move to cheaper combined services
Until recently, UK-based Vodafone had prided itself in being a ‘pure play’ mobile operator, unaffected by a declining fixedline business. But as the fixed and mobile businesses move to cheaper, combined services, the firm had to change track.
Vodafone Group Plc is the world’s leading mobile telecommunications company, providing a wide range of services including voice and data communications.
The company confirmed its plan to enter the fixed line broadband internet market via a deal with the wholesale arm of telecom firm BT Group. Vodafone, which had disclosed in May 2006 its plans to enter the broadband internet space, said it expected to launch the fixedline broadband internet service by the year end.
“This partnership will enable Vodafone’s customers to benefit from bundled packages of mobile and broadband services nationwide due to BT’s unique footprint in the UK,” Vodafone said in a statement.
In May, 2006 the company was aiming to get up the revenues over the next three to four years from its new Mobile Zone businesses, including converged fixed-mobile internet services. Competition in Britain;s broadband market is intense, with the Carphone Warehouse and BSkyB recently announcing cut-price packages.
Britain’s second biggest telecom group Cable & Wireless plc, recently exited the UK retail broadband market, because of stiff competition.