Vodafone is in talks to buy YOU Broadband. You Broadband is part of the YouScod18 Network based in Mumbai. The Economic Times has reported a story about Vodafone being in talks to buy YOU Broadband. The deal is said to be around 400 crore. The company could finalize the acquisition process in the coming weeks or months.
This is part of Vodafone's foray into wired internet. While Vodafone already has a presence in Wireless internet, with 3G and its latest foray into 4G LTE in select cities in India. The company is expanding its 4G LTE network in phases across India.
Vodafone's acquisition of YOU Broadband is the company's entry into the growing Broadband space. People familiar with the issue feel that acquiring YOU Broadband may not be the right thing for Vodafone to do given the stagnancy of YOU Broadband's broadband business and posting low profits.
However, given the timing of Reliance Jio's entry into the 4G LTE and Broadband space, this could be a good chance for Vodafone to capitalize on Broadband. Also, Vodafone will face competition in the internet space when it comes to pricing and internet speeds.
Globally, Vodafone is expanding its telecom business by foraying into the broadband business in markets where it has its presence. In India, the company is launching 4G LTE services in several cities in phases.