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Vodafone gets fixed in Spain and Italy

Buys up broadband-supplier Tele2

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Vodafone has splashed out £537m on Tele2 in Italy and Spain, reaffiring the firm's commitment to quad-play and giving it three million new fixed-line customers with over 600,000 using broadband.

Tele2 Italy brings 2.6 million customers into the Vodafone family, 400,000 of those using broadband, while Tele2 Spain brings just over half a million with nearly half using broadband connections.

Both markets are rapidly expanding and offer Vodafone the opportunity to gain customers by selling the advantages of broadband, rather than having to get people to change providers as they do in the UK.

Both Tele2 companies also have their own, unbundled, ADSL offering in major cities, something Vodafone has shied away from in the UK where competitive pressure is much higher.

Vodafone reckons it can save money through the inevitable "synergies", but also intends to make money by cross-selling its products like a proper quad-player. ®

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