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Vodafone Buys Liberty’s European Assets for Nearly $21 Billion

Global Telecom Cloud Market

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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