Monday, September 11, 2006

Vodafone DSL Deal: More Questions than Answers

Keith Mcmahon got up a lot earier than I did this morning judging by his prompt responce to the announcement that Vodafone have jumped in feet first to the DSL market.

Dean thinks its a good deal for Vodafone but I am not sure that what the company needs right now is to be in a fight that will destroy so much value. Just look at how much BT retail is spending in subsidies to retain/acquire customers to BT Home Hub.

I have to ask, who will be the losers in all this? Over in Italy Telecom Italia have decided that savings cannot be made in the converged world and are considering selling its network and/or its mobile arm. As an economist I have to say that at some stage the consumer must pay a reasonable price or the business goes bust, this being the case, we also have to expect to pay a mobility premium for a few more years.

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