Vodafone has decided to branch out its business to broadband and the like by buying beleaguered telecoms company Cable & Wireless.
In a deal worth £1 billion, Vodafone has now bought up the biggest fibre optic network in the UK, which will put the company in direct competition with the likes of BT - although the company did note that the acquisition was more for the 'enterprise' segment of the market.
Dig deeper though and it is thought that Vodafone will use its newly bought cables to offload some of the pressure on its mobile networks and in turn increase its data capacity.
It's business time
Speaking about the buyout, Vittorio Colao, Vodafone's chief executive, said: "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."
Although Cable & Wireless – a company that was founded in the 19th Century – has become more of a wholesaler of late, the deal does open up the possibility of Vodafone offering its own broadband service to customers.
If it doesn't then Vodafone will still have its hands full with the business end of the market – Cable & Wireless currently offers data solutions for Tescos and many areas of the government, including the NHS.
It also brings Vodafone to more markets than ever before. Cable & Wireless currently operates in almost 30 markets, including the Caribbean and Jersey.
