Vodafone's agreed merger with Cable & Wireless Worldwide (CWW) potentially introduces a major world telco into the global telecoms marketplace with the combination of fixed and mobile services in a global network. Any significant sale of operations, as has been mentioned in some news sources, would in our view need to be carefully considered in case it put that global strategy at risk.
In particular this is a major step up in global services for Vodafone, which will now have significant new enterprise customers worldwide, as well as the substantial international network systems and relationships that CWW has built up over many years. For CWW this goes a long way to securing the company's position as number 2 business services provider in the UK, with potential funding for its ageing data centre network, while giving its global network a new mission statement - to take unified communications to global MNCs and large enterprises worldwide and to expand services in emerging markets in particular.
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