News
Mobile operator reportedly on verge of acquiring You Broadband for INR4 billion.
Vodafone India has allegedly agreed a 4 billion rupee (€53.3 million) acquisition of You Broadband, a deal that would bolster its fibre assets and enable it to offer fixed-line Internet access.
This is according to sources cited in an Economic Times report on Wednesday, who said that Vodafone has applied for approval for the transaction from India’s Foreign Investment Promotion Board.
Privately-held You Broadband owns a 3,000-kilometre fibre optic network, as well as 6,000 kilometres of last mile infrastructure in 12 cities, including Mumbai. It offers a raft of tiered data speeds and allowances, from INR1,525 (€20) for a month of 4-Mbps broadband with a 50 GB allowance, up to INR20,776 (€276.53) for 12 months of 100-Mbps broadband with a 3 TB allowance.
Acquiring You Broadband would add capacity to Vodafone India’s transmission network, which is becoming increasingly importance as mobile data use grows, and as new rival Reliance Jio Infocomm prepares to roll out 4G services.
It would also give Vodafone an opportunity to improve customer retention by offering bundles of fixed and mobile services in several telecom circles.
According to the Economic Times’ sources, Vodafone India and You Broadband have been holding talks for almost six months. A separate Economic Times report in January claimed the parties were close to finalising a deal.
