Vodafone and BT have struck deals to use each other’s networks, but the purchase of CWW by Vodafone will likely fill in some of their gaps, making it less likely that are going to need BT in the future. This is also going to make it easier for Vodafone to go after larger customers over BT because they are going to have farther coverage which likely is going to make the relationship between the two providers a bit strained in the future.
Calao stated that there is no reason why the partnership would dissolve, but Livingston may have a different opinion.BT is in a different position from Vodafone, given the fact that they sold off their mobile arm quite a few years ago so now when it needs to offer a wireless connection it does so by piggy backing on Vodafone’s network.
Vodafone gets back the favour by plugging into BT’s Wi-FI network and also utilising some of the 21CN network when it needs it for backhaul. However, while this arrangement has worked for the last few years the new CWW acquisition makes it clear that Vodafone may be ready to try it out on their own.
Over the last few years Vodafone has lost a lot of its domestic market ground as it saw O2 rise up and then losing out when T-Mobile and Orange merged together. Vodafone stated that the CWW business will allow it to move back up to second place coming in right behind BT.
This is due to the fact that adding CWW networks will allow it to almost double the size of its enterprise and offer the firm another seven billion pounds of profit each year allowing its turnover to come in much closer to BT’s.