Vodafone And IHUG Writing New History
Comment by Paul Budde
This is a very significant development as it clearly goes beyond the strategy Vodafone has pursued so far; which is to
built partnership with fixed based operators in order to get a better foothold in the market.
It vindicates a position we have held for many years that mobile only infrastructure doesn’t make sense. If you are an
infrastructure operator you need to be able to make the choice about what would be the best possible infrastructure you
can use for certain services and applications.
By being a mobile operator only you limit yourself to only be able to deliver those services and applications in one
particular format.
What of course has helped the situation is that new 4G technologies, which are around the corner, are going to see a
seamless operation between various infrastructure platforms. Depending on where the user is and what access device the
user is using at that time a service or applications will be delivered in the most appropriate format for that purpose.
The future of fixed and mobile is both in broadband so it make sense that the company moves into that direction. Ihug is
clear leader in that field and has proven to be able to come up with innovative offerings, I think that in this respect
the two companies will also culturally have a good fit.
What exactly the future will look for the combined companies will depend on future developments and the innovations the
two companies can come up with. It certainly is still very much a blank sheet of paper and through this innovative
cooperation this unique combination could also start writing some new telco history here. I am sure that all eyes of the
larger Vodafone organisation will be on New Zealand to follow what the outcome of the merger will be.
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PAUL BUDDE Communication Pty Ltd,
T/As BuddeComm
mailto:pbc @ budde.com.au
BuddeComm operates the largest, continually updated, telecommunications research service on the Net