Vodafone goes ‘all-in’
Vodafone has been spending hard for the last couple of weeks. In the internet world, it has signed deals with MySpace, eBay, YouTube and now Google Maps. You can be sure that little lot didn’t come cheap.
But the cost pales into comparison when looking at their latest purchase. They have just paid $11bn for a controlling interest in the Indian network Hutch Essar, currently the country’s fourth largest. Even for one with deep pockets, that’s no small change.
Why have Vodafone gambled so much? Because India is the world’s fastest growing mobile phone market and has massive potential. And because they need to offset their ailing European operations, where growth has almost come to a halt.
