Now it’s the turn of the Greeks with Hellas Online
As a sign that the UK’s leading MNO [Mobile Network Operator] still feels that the future lies in offering its customers a complete bundle, Vodafone has announced that its Greek subsidiary has agreed to acquire a 72.7 per cent stake in Hellas Online (HOL). It reckons that HOL – a leading provider of broadband and fixed-line telephony in Greece, has around 0.5 million customers. That represents a market share of approximately 11 per cent based on its own research. For that stake Vodafone is willing to pay the Intracom Group and World Equities Investments Holdings a total cash consideration of €72.7 million. This will help provide Vodafone Greece with the ability to offer the infamous four play to its customers.
For those unfamiliar with the term, the cellular industry appears enamoured with the notion that the best way of retaining customers is to be able to offer them all four main digital services.
The four include fixed line telephony and broadband (both of which Hellas Online can offer), along with mobile (cellular) connexions plus digital TV.
GoMo News currently has no idea where Vodafone will get the TV bit from when pitching to its Greek customers.
Vodafone says this transaction builds on existing commercial cooperation between Vodafone Greece and HOL since 2009.
In 2009, Vodafone Greece became an 18.5 per cent shareholder, but it didn’t say who hold the remaining 9.8 per cent in the company.
Of course, Vodafone has plenty of gold in its coffers after selling off its stake in the USA’s Verizon Wireless.
As strategies go, GoMo News isn’t a fan of fourplay as a customer acquisition tools.
However, if you have money washing around you might as well use it to making savings via integration.
Vodafone expects to achieve cost and capex synergies with an annual run-rate of €24 million before integration costs by the third full year post completion.
That’s equivalent to a net present value of approximately €135 million after integration costs.
These synergies are expected to be realised from sharing network and IT infrastructure, savings on marketing and bill collections, and rationalisation of overlapping functions.