Vodafone Ukraine, the second-biggest mobile carrier in the Ukraine market, has announced plans to enter the fixed broadband market.
The company says it intends to acquire 99.99 percent of the shares of the private joint stock company Farlep-Invest, which operates under the Vega brand, as well as at least 95 percent of the authorized capital of another company, Cable TV-Finance LLC.
Farlep-Invest provides fixed access internet and telephone communication services. Cable TV-Finance provides fixed access to internet services.
Vodafone Ukraine adds that the two companies own a frequency resource in the 2.3 GHz range (15 MHz in six regions), as well as in the 2.5-2.7 GHz range.
If the deal is closed, Vodafone Ukraine plans to continue carrying out the same types of economic activities as the companies it acquires have done, further developing its communications business, especially in the fixed line area.
In a press release announcing the deal, Vodafone Ukraine insists that this transaction will not lead to monopolization or any restriction of competition in the market.
Nevertheless, a Vodafone Ukraine spokesperson made it clear that entering the fixed broadband market is a strategic priority for the company, which aims to provide converged services, meeting customer demand for multiple services from one source.
Certainly, with well over 100 percent mobile penetration of a population estimated at around 45 million, diversifying its offering may be a reasonable move for the company.
