Tuesday, January 3, 2017

Liberty Global Takes Merger Route to Acquire Spectrum

Liberty Global and Vodafone have completed the merger of Liberty Global’s cable TV and broadband business in the Netherlands with Vodafone Group mobile business, creating a joint venture valued at €3.5 billion (US$ 3.68 billion).

The joint venture is called VodafoneZiggo Group Holding B.V. (Ziggo is the brand name of Liberty Global's existing Dutch operations.)

The deal will allow the joint-venture partners to offer  quadruple play bundles of cable television, internet access, voice and mobile services to customers.

The 50-50 joint venture will have 4.2 million video subscribers and 5.3 million mobile phone subscribers.

The deal illustrates one potential way fixed network operators can acquire mobile capabilities, without having to pay for spectrum rights. The same sort of logic applies to mobile operators who might make acquisitions of other existing mobile companies, acquiring customer bases, revenue streams, spectrum rights and network assets.

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