Vodafone buys Cable and Wireless

The acquisition announced today is a good move for Vodafone. As smartphones grow their use of video all the cable operators will be stuck unless thay can provide high speed backbone services particularly backhaul. This is the logic behind my holding of Dragonwave the world leader in radio backhaul. But of course fibre is better and C&W has a huge fibre network already installed in the UK which Vodafone can now leverage. C&W is also a large commercial player in services which will add to Vodafones revenues and opportunity. The chatter on the street is that they will sell off the overseas business, but I would be surprised if they do. The undersea fibre will allow Vodafone to link its global businesses and provide unique new services. I will be doing the maths but I don't think they overpaid and it allows a lot of room for Vodafone to grow in new areas assuming they can integrate it all. My one worry is Tata walking away as this Indian group is astute and was looking for a UK acquisition, plus Vodafone is big in India. It is said they found it too expensive.