Vodafone has come to an agreement to buy the Cable & Wireless Worldwide group, handing over around £1.04bn to C&WW shareholders for the right to acquire its network of fibre and other less exciting old cabling.
Rather than stepping out into offering TV and ISP services of its own, Vodafone plans to use C&WW's network to expand its coverage and backhaul, using the fibre grid to take some pressure off its existing mobile network infrastructure and help shuffle data around the country.
It will also bring "attractive network and other cost saving opportunities" according to Vodafone, which now owns some 20,000km of C&W's existing UK fibre. Sadly there will be a "reduction of headcount" in the UK due to some overlapping roles as a result of the merger. [Vodafone]