Vodafone Group has merged with Liberty Global in a Netherlands joint venture.
The two companies will merge their operations in the region in a 50-50 agreement that will see Vodafone’s mobile business combined with Liberty Global owned Ziggo, which offers broadband and TV.
The network’s CEO Vittorio Colao used a conference call to explain that Vodafone will be taking a market-by-market approach when it comes to expanding the JV model.
When questioned on bringing the JV model to the UK, Colao explained that the two companies would have to consider the competition and infrastructure environments of different markets.
Speaking about the agreement between the two companies, he said: ‘Together we will be a stronger competitor in the Netherlands, benefiting customers of both companies and the market as a whole. This transaction marks a continuation of Vodafone’s market-by-market convergence strategy and we look forward to partnering with Liberty Global to create a fully integrated provider in one of our core European markets.’
According to Paolo Pescatore, director of Multiplay and Media at CCS Insight, the JV model is something that the two companies may look to use across other markets.
He said: ‘This follows failed asset swap talks between both companies on a wider scale and it seems that both companies will now be looking to replicate this approach in other markets.
‘The tie-up is extremely complementary and makes perfect sense. Vodafone has not made significant headway in the consumer fixed line market and Liberty Global is keen to add mobile services. One clear benefit of the JV is the ability to introduce services much more quickly, but clear decisions need to be made on brand and retail.’