Vodafone to buy Spain's Ono (by Reuters UK)

 Vodafone , the Britain's giant of communication, will announce on Monday 17^th march the purchase of Spain's private operator ONO. The total amount of the operation will be approximately 7,2 billion Euros. This purchase will be the third acquisition in the last three years in order to improve its networks and increase its presence in Europe communication market. (reuters)

Vodafone is the seventh most valuable brand and the second largest communication's company in the world with more than 450 millions of customers. Vodafone operate directly in more than 30 countries and partner with networks in over 50 more.

In Spain, Vodafone is the second largest communication company in mobile services with a market's share of 29%, as internet provider has only a share of 7%. Ono has market's share 14% in internet services and only offers mobile services to its customers.

                   

                                                  
                                            Spain Mobile market share                                     Spain Internet Home's line market share

In Spain's communication market, Movistar has the State's concession in maintaining communication infrastructure, that means that other companies have to pay to Movistar for using the infrastructure or have to develop it. It means a direct dependence of a direct competitor in internet's line products (DSL)

The purchase of Ono by Vodafone, not only will suppose an increase of market presence. Ono use its own high capacity fibre optic digital networks that will allow Vodafone remove part of its dependence to Movistar and offer better services through its own infrastructure.

www.uk.reuters.com

www.vodafone.com

www.ono.es

www.wikipedia.org

www.cmt.es (Comisión Nacional del Mercado de las Comunicaciones - National Communications Commission)