Vodafone struck a deal to buy a few European
assets of the United States cable company Liberty Global.
United States: The UK based Telecom giant, Vodafone has
recently struck a deal to buy a few European assets of the United States cable
company Liberty Global. The CEO for Liberty Global believes that the
deal will benefit both the investors and customers.
Vodafone would be buying operations in
Germany, the Czech Republic, Hungary and Romania from Malone's Liberty Global.
Vodafone is expected to pay USD 12.8 Billion in cash for the businesses and
around USD 21.8 Billion including debt.
The CEO of Vodafone believes the acquisition
will make the company Europe's leading next generation network owner and enable
them to provide their services to a large number of mobile customers and
households across Europe.
The move will however intensify Vodafone’s
rivalry with Germany's Deutsche Telekom in the continent. The CEO for Liberty
Global believes the deal also transform the competitive landscape as Europe
needs strong competition from scaled national challengers willing and able to
invest in next-generation wireless, video and broadband services.
Vodafone
said there's "limited overlap" between its existing operations and
the ones it's buying from Liberty and predicted the deal will have "no
negative impact on competition." It's aiming to complete the purchase by
the middle of next year.
According
to TechSci Research,
the acquisition
of Liberty Global’s European assets by Vodafone will open enormous potential
for the telecom sector in the European Continent. The acquisition will give
stiff competition to the top telecom provider Deutsche Telekom and drive them
to improve and innovate their services. TechSci
Research predicts that the merger would act as a driver for Global Telecom
Cloud Market. Growing focus of telecom companies towards providing content
delivery, unified communications and collaboration, is expected to drive the
growth of Telecom Cloud market in the coming years.
According to the recently
published report by TechSci Research,
“Global
Telecom Cloud Market, By Type (Services & Solutions), By End
User (BFSI, Media & Entertainment, etc.), By Application (Billing &
Provisioning, Traffic Management, etc.), By Region, Competition Forecast &
Opportunities, 2012 – 2022”, Global telecom cloud market stood at $ 11.05
billion in 2016, and is forecast to exhibit a CAGR of over 19%, in value terms,
during 2017-2022, to reach $ 38.54 billion by 2022, on back of growing need to
minimize operational and administrational costs by telecom companies.
Increasing deployment in BFSI sector and rising demand from media &
entertainment industry is channelizing demand for telecom cloud across the
globe. Unified Communication and Collaboration is gaining immense popularity
among telecom service providers to offer better and efficient services. Demand
for Communication Defined Network services is also growing across the globe due
to increasing need for responding quickly to user queries.
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