Triple Play Behind Vodafone's Broadband Moves

[qi:051] Vodafone, one of world’s largest mobile operators is slowly expanding its fixed line footprint, as the companies tries to bundle its wireless services with broadband. The motivation for the company to do is – fixed-mobile convergence, and of course juicing its average revenue per user. It can also help the company counter the bigger industry trend of people switching to cheaper VoIP-based mobile voice options, as Wi-Fi enabled phones become more common place.

Vodafone has already been offering such services in U.K., Germany and Portugal. Now it is turning its eyes to Italy where it might buy broadband assets of Tele 2, a Swedish operator, even though it offers services through another European carrier, Fastweb.

“The strategy is designed to boost the loyalty of Vodafone’s mobile customers,” writes The Financial Times. “People familiar with Vodafone said higher broadband pricing in continental Europe, compared with the UK, could justify purchases of fixed-line infrastructure.”