Vodafone goes broadband

VODAFONE HAS decided to become a BVNO (Broadband Virtual Network Operator) thanks to a tie up in the UK with BT Wholesale.

The leading mobile network operator has finally decided to respond to its rivals - like Orange, The Carphone Warehouse, BSkyB and NTL by offering a dual play option - mobile and broadband.

According to Vodafone this deal "enables Vodafone's customers to benefit from bundled packages of mobile and broadband services nationwide, due to BT's unique footprint in the UK."

Picking the market leader in broadband makes a great deal of sense for Vodafone. It will be interesting to see if Vodafone decides it also needs to offer a fixed line telephony option.

If so, will it simply choose BT again?

The one advantage to this approach, of course, is that BT Wholesale is actually geared up to deliver the broadband - unlike the Carphone Warehouse and Orange who have been desperately struggling to fulfill customer requests.

And, of course, there's no chance of Vodafone offering this service for free - since it has to pay BT Wholesale the going rate. Or will it build the cost into new mobile contracts? µ