Telecom Lead Europe: Mobile service provider Vodafone is
expected to offer about 1.1 billion pounds ($1.8 billion) for U.K. fixed-line
network operator Cable & Wireless.
The main benefit to Vodafone will be Cable & Wireless
World’s 260,000-mile undersea cables network.
Cable & Wireless is likely to recommend that
shareholders accept Vodafone’s bid of between 40 pence and 45 pence per share.
Vodafone has time till Monday to make an offer, according to media reports.
According to the 2011 annual report, 700 million pounds
of CWW’s 2.2 billion pounds in annual revenues comes from carriers.
More than 60 percent of its international revenues of 557
million pounds are accounted for by carriers.
In the U.K., CWW has contracts with 70 of the 100 largest
blue chip companies, according to Barclays Capital, as well as the BBC and
government departments such as the Foreign and Commonwealth Office.
Recently, Cable & Wireless Worldwide said the current
capital expenditure program has been reviewed with 20
million pounds of 2012 capital expenditure projects being put on
CWW recently said it has executed its long term plans
with the aim of reducing support function cost. Headcount in support functions
is down 7 percent since the beginning of 2011/12 and will fall further by the
Tata Communications to pull out from the race for Cable &
Last week, Tata Communications pulled out from the race
for Cable & Wireless Worldwide. Tata Communications has decided not to
spend $2 billion on Cable & Wireless Worldwide as Tata Communications could
not reach an agreement with CWW on offer price.
Vodafone is strengthening its wireline business in India.
Vodafone India is leading the wireline telephony market in terms of net
additions in February 2012. The net addition of wireline subscribers of
Vodafone was 26.41 percent in February. Vodafone started reporting of fixed
line subscriber base of its corporate customers from February 2012.
Vodafone India posts 6.3% increase in Q3 2011-12 income
Vodafone India posted 6.3 percent increase in Q3
2011-12 income at 1.02 billion pounds against 963 million pounds in Q3 2010-11.
Significant addition in mobile user base in India
contributed to the single digit growth. Mobile users touched 14.77 crore. Churn
for post-paid mobile users was 20.7 percent, while pre-paid churn was 71.6
Voice revenue grew to 790 million pounds in Q3 2011-12
from 761 million pounds in Q3 2010-11.
3G roll outs assisted data revenue to move up 30 percent
to 83 million pounds in Q3 2011-12 from 64 million pounds in Q3 2010-11.
Following the launch of commercial 3G services in February 2011, 3G was
available to Vodafone customers in 683 towns and cities across 20
circles at 31 December 2011.
Messaging revenue during the third quarter was 49