Light Reading
Vodafone strikes euro 7.2 billion deal to acquire Spanish cable operator to add to its European non-mobile assets.

ONO Says Yes to Vodafone

Ray Le Maistre
3/17/2014
50%
50%

Vodafone has dipped into its fat wallet, swelled by the recent sale of its US assets, and struck a 7.2 billion (US$10 billion) deal to buy Spanish cable operator ONO, the two companies announced Monday morning, ending weeks of speculation. (See Vodafone to Buy ONO for 7.2B and Vodafone Agrees to $130B Verizon Stake Sale.)

The deal, which carries no debt or cash, adds 1.9 million customers (including about 120,000 small businesses) to Vodafone's operation in Spain, where it already has 13.6 million mobile customers and where it is building out fiber-based fixed broadband connections to 1.5 million Spanish homes. The deal will also swell Vodafone's headcount by about 2,500 staff. (See Euronews: €1B Boost for Spanish FTTH.)

Vodafone Group plc (NYSE: VOD) aims to take advantage of ONO 's relatively modern network infrastructure, in which the Spanish operator has invested 7 billion ($9.74 billion) since 1998, and sell bundled services to the 7.2 million homes passed by ONO's access network. ONO has upgraded its entire network to DOCSIS 3.0 and offers cable broadband at speeds in excess of 200 Mbit/s, while its video service includes a Tivo-based option. Vodafone is in the process of upgrading its Spanish mobile network to 4G LTE. (See Euronews: Vodafone Wins Spain's 4G Race, TiVo Surpasses 2.5 Million Subscribers in Europe, and ONO Will Go Full Throttle.)

ONO, which was set for an IPO and which has also attracted acquisition interest from European cable giant Liberty Global Inc. (Nasdaq: LBTY), generated revenues of 1.6 billion ($2.23 billion) and reported a slight net loss of 25 million ($34.8 million) in 2013. (See Euronews: Vodafone Homes In On ONO.)

The ONO acquisition deal had been expected by the financial markets, and so has had little impact on the mobile operator's stock. Vodafone, which has more than 410 million mobile customers worldwide, and which generated revenues of 11 billion ($18.3 billion) in its fiscal third quarter that ended December 31, 2013, saw its share price rise by 3 pence, or 1.3%, to 225 pence on the London Stock Exchange at lunchtime.

The ONO deal is the latest move in a battle between Vodafone and Liberty Global to dominate the European cable services market. (See Euronews: Rivals Set for Cable Asset Battle.)

Liberty is seeking economies of scale from acquisitions such as Virgin Media in the UK and Ziggo in the Netherlands, while also seeking to add its own mobile services to its existing triple-play packages. (See Euronews: Liberty Global Plans Pan-European MVNO, Liberty Global to Buy Ziggo for 10B, and Liberty Makes $23.3B Play for Virgin Media.)

Vodafone, meanwhile, is seeking to combine its mobile, fiber-based fixed broadband, and enterprise services with cable network assets that can add video delivery, additional high-speed broadband, and data transport (including mobile backhaul) capabilities to its European assets. The mobile giant recently completed the acquisition of cable operator Kabel Deutschland GmbH , a move that gives it more than 32 million mobile subscribers, around 5 million broadband, and 7.6 million cable TV customers in Germany. (See Euronews: Vodafone Clears Hurdle to Kabel Bid and Vodafone Germany And Kabel Deutschland Integration To Begin From 1 April 2014.)

Ray Le Maistre, Editor-in-Chief, Light Reading Circle me on Google+ Follow me on TwitterVisit my LinkedIn profile

(4)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View
albreznick
50%
50%
albreznick,
User Rank: Blogger
3/18/2014 | 9:02:59 PM
Re: Competitive landscape
good question, Mitch. It should boost the competitive landscape in voth Spain and all of Europe, especially if it keeps Liberty Global from being an even bigger goliath than it already is. .  
albreznick
50%
50%
albreznick,
User Rank: Blogger
3/18/2014 | 9:01:22 PM
Re: What's in an acronym?
It probably doesn't have quite the same meaning in Spanish. So I doubt they worried about that. :) 
FakeMitchWagner
50%
50%
FakeMitchWagner,
User Rank: Lightning
3/17/2014 | 12:49:14 PM
Competitive landscape
Will this deal have a significant effect on the competitive landscape in Spain? In Europe in general? Sounds like ONO was a relatively small company, with some technology that might be significantly helpful to Vodafone, making the acqusition an improvement for competition. 
Ariella
50%
50%
Ariella,
User Rank: Light Sabre
3/17/2014 | 10:55:17 AM
What's in an acronym?
I wonder didn't ONO do any market research that warned the company off adopting a name that sounds like, Oh no? They could have adopted Mr. Bill as their mascot. 
Flash Poll
LRTV Custom TV
Driving the Network Transformation

7|23|14   |   4:29   |   (0) comments


Intel's Sandra Rivera discusses network transformation and how Intel technologies, programs, and standards body efforts have helped the industry migration to SDN and NFV.
LRTV Custom TV
Distributed NFV-Based Business Services by RAD

7|18|14   |   5:38   |   (0) comments


With the ETSI-approved Distributed NFV PoC running in the background, RAD's CEO, Dror Bin, talks about why D-NFV makes compelling sense for service providers, and about the dollars and cents RAD is putting behind D-NFV.
LRTV Custom TV
MRV Accelerating Packet Optical Convergence

7|15|14   |   6:06   |   (0) comments


Giving you network insight to make your network smarter.
LRTV Custom TV
NFV-Enabled Ethernet for Generating New Revenues

7|15|14   |   5:49   |   (0) comments


Cyan's Planet Orchestrate allows service providers and their end-customers to activate software-based capabilities such as firewalls and encryption on top of existing Ethernet services in just minutes.
LRTV Custom TV
Symkloud NVF-Ready Video Transcoding, Big Data

7|9|14   |   3:41   |   (0) comments


Kontron and ISV partner Vantrix demonstrate high-performance video transcoding and data analytic solutions on same 2U standard platform that is ready for SDN and NFV deployments made by mobile, cable and cloud operators.
LRTV Huawei Video Resource Center
The Evolving Role of Hybrid Video for Competitive Success

7|4|14   |   4:09   |   (0) comments


At Huawei's Global Analysts Summit in Shenzhen, China, Steven C. Hawley from TV Strategies speaks to us about the evolving role of hybrid video for competitive success.
LRTV Huawei Video Resource Center
How CSPs Leverage Big Data in the Digital Economy

7|4|14   |   4:48   |   (2) comments


Justin van der Lande from Analysys Mason shares with us his views on how telecom operators can leverage customer asset monetization with big data. His discusses the current status of big data applications and the challenges and opportunities for telecom operators in the digital economy era.
LRTV Huawei Video Resource Center
Accelerator for Digital Business Future Oriented BSS

7|4|14   |   3:08   |   (0) comments


Mobile and internet are becoming intertwined; IT and CT are integrating; and leading CSPs have begun to transform to information service and entertainment providers. How should the BSS system evolve to enable this transformation? Karl Whitelock, an analyst at Frost & Sullivan, shares his views.
LRTV Huawei Video Resource Center
Orange Tunisia Discusses Multi-Band Antenna With EasyRET Solution

7|4|14   |   2:45   |   (0) comments


As new site acquisition becomes more difficult, Orange Tunisia has requested multi-band antenna to support UMTS and LTE innovation. Some things considered include reducing the cost of antenna maintenance and having high reliability antenna and EasyRET solution.
LRTV Huawei Video Resource Center
How Telefonica Spain Considers Antenna Selection for LTE Network Deployment

7|4|14   |   2:19   |   (0) comments


Tony Conlan, Global CTO of RAN, Telefonica, shares his opinion on antennas in LTE network deployment: Tower space is the premier requirement on antennas; reliability is important to reduce OPEX; and EasyRET solution will be helpful for antenna maintenance.
LRTV Huawei Video Resource Center
dtac Thailand: Multi-band Antenna & Capacity Solution for a Better MBB Experience

7|3|14   |   3:45   |   (0) comments


With the development of LTE, tower space and load are limited for new antenna, but users' capacity requirements are growing fast. To provide a better MBB experience, Panya Vechbanyongratana from dtac Thailand shared his experiences and antenna requirements.
LRTV Documentaries
BTE Panel: Network of the Future

7|2|14   |   1:00:57   |   (0) comments


Full-length video of the ATIS Panel Discussion: 'How Far Away Is the Network of the Future & What Does It Look Like?' from the Big Telecom Event (BTE) in Chicago.
Upcoming Live Events!!
September 16, 2014, Santa Clara, CA
September 16, 2014, Santa Clara, CA
October 29, 2014, New York City
November 11, 2014, Atlanta, GA
December 9-10, 2014, Reykjavik, Iceland
June 9-10, 2015, Chicago, IL
Infographics
Allot's latest MobileTrends Charging Report shows that value-based pricing plans are up from 35% in 2011 to 85% in 2014.
Hot Topics
Microsoft to Axe 12,500 Ex-Nokia Employees
Sarah Reedy, Senior Editor, 7/17/2014
The Municipal Menace?
Jason Meyers, Senior Editor, Utility Communications/IoT, 7/22/2014
GM: 10 Car Models on Road With AT&T's LTE
Dan Jones, Mobile Editor, 7/18/2014
Apple Earnings: Strong iPhone Sales, iPad Sales Slump, $7.8B Profit
Mitch Wagner, West Coast Bureau Chief, Light Reading, 7/22/2014
Like Us on Facebook
Twitter Feed