BT and Vodafone have been told that it is okay to go ahead and let Vodafone take over BT’s broadband and other fixed line assets in Ireland. The deal will lead to yet another market where Vodafone will gradually become equipped to offer quadruple play services.
The acceptance of the deal came from Ireland’s Competition Authority after the deal was announced during July.
Under the terms of the agreement, BT will transfer its consumer and small business broadband and voice customer base to Vodafone and will also provide wholesale network services to underpin Vodafone’s business over a seven-year period.
‘This partnership is good news for consumers and small businesses in Ireland as it creates greater competition and choice in the fixed line markets,’ said Charles Butterworth, CEO of Vodafone Ireland.
‘Vodafone is now the number two player in the fixed broadband market (in Ireland) and we will continue to deliver on our strategy of being Ireland’s number one total communications provider by offering real value and best in class products and services.
‘This partnership will enable Vodafone to launch an exciting roadmap of fixed products and services that are strongly differentiated from those available in the market today, giving our customers better value and more choice.
The two uttered some nonsense about this stimulating competition by offering more choice, when of course it offers less. But Vodafone has increasingly shown that its component businesses at least, have the appetite to introduce new types of services where it has broadband lines, and to pursue triple and quad play strategies.
There is almost the feeling these days that BT, having sold its O2 cellular operation to Telefonica regrets the action and thinks of itself as the natural partner for Vodafone. BT already has an MVNO with Vodafone and also backhauls much of its UK network. If they got any closer they would have to merge.
BT Ireland operates across Northern Ireland and the Republic of
Ireland, is one of the largest ISPs operating there, and also runs O2 Ireland’s network there on an outsourcing basis (we expect this to remain with BT). BT is also the national subcontractor for 3 Ireland for broadband.