Portugal may distract Vodafone from India

A BRAVE bid for Portugal Telecom (PT) by its smaller rival, SonaeCom, may benefit Vodafone greatly. It could be left as the second of only two Portuguese mobile phone networks.

It looks likely that the local regulator, AdC, may well let the merger go ahead. If so SonaeCom will most likely merge its own Optimus network with PT's TMN, leaving Vodafone as the only other contender.

Another consequence is that a whole bunch of firms are now contemplating becoming MVNOs (Mobile Virtual Network Operators). The list of potential candidates includes Onitelecom, Radiomovel, and Tele2.

Why shouldn't Vodafone join in and let a couple of them utilise its existing network?

The curious thing is that Vodafone has also expressed interest in any assets that the combined SonaeCom and PT might be required to sell off by the AdC.

These assets appear to be fixed telephony and cable networks rather than mobile networks. Which means Vodafone may well be contemplating acquiring the ability to offer triple or even 'four play' facilities to its Portuguese customers - ie fixed, mobile, broadband and TV.

Setting up such a venture could well distract the company from its efforts to acquire a majority stake in India's Hutchison Essar.

There's only one thing that still puzzles the INQ. Why does Vodafone continue to hold onto its stake in Verizon Wireless when the latter isn't a GSM/W-CDMA operator?

Obviously the holding is worth a bob or two but if it wants to expand globally then continuing its alliance with a cdmaOne operator makes little sense. µ

L'INQ
From story in Publico newspaper