Enders Analysis outline implications of Vodafone’s Cable & Wireless purchase
Enders Analysis have published research on Vodafone’s in train acquisition of Cable & Wireless Worldwide, indicating that efficiency savings, whilst possible, are likely to be slim.
Instead the main advantage of the deal from Vodafone’s perspective is the ability to cost effectively expand its fixed enterprise business in the UK, gaining the expertise to repeat this growth elsewhere in the process.
Any acquisition is unlikely to be completed until September in any event, suggesting that the ramifications of the deal, whilst massive, will entail only gradual change.
The research indicates that wireline wholesalers, then corporate service retailers would be impacted first, particularly BT.
Thereafter the impact would percolate through to the small business sector. A more distant prospect would be Vodafone’s re-entry into the UK residential wireline market.