That C&W takeover of THUS Telecom people are talking about

As the 30th June deadline looms and THUS Management remain coy about their plans, we take a look at how a combined CW/THUS entity would address the IP services market in the UK.
In this graph we see the customers of each player by turnover. The first thing that strikes you is that where CW is weaker than the market average (0 on the 'Y' axis), THUS is stronger and vice-versa. A combined entity would have a significant increase in market strength across the whole business IP services market.

CWs undeniable success in controlling costs, reducing unplanned churn, and bringing its customer base back to those it finds most profitable to serve; has led to a fall in its 'overall' market strength. It's position in the profitable £2m-£20m Turnover bracket is particularly effected, see below.
For CW being able to leverage THUS' position amongst this group could quickly address the concerns that some analysts recently expressed that CW has pulled back too far, too fast.

Given that unlike India, Big Vision in UK Telco sadly took a pasting in the 2001 crash, What is the Pluthero vision that is big enough to accommodate the acquisition of THUS?

THUS is a strong company, has a lot of potentially profitable customers, a UK wide NextGen powered network, and growing reputation for delivering value to customers & shareholders. CW, is a global brand, has a focus on increasing profit per customer, and access to a global network which makes them increasingly attractive to multinationals transitioning from legacy to all IP NextGen services.

My opinion is that both companies are growing in strength and left to it would thrive independently; together the potential is extraordinary.

"Vodafone is a national operator in mobile and we'll take that philosophy to the fixed line world as well"

In recent years New Zealand has become the place where technology companies go to test products, and hone business models prior to releasing them on a world stage.

After my comments on the likelyhood of Vodafone buying up more fixed line capability, one of my colleagues passed me this news report on Vodafone's LLU 'Red' Network in New Zealand.

Vodafone Red has unbundled half the exchanges in NZ's major cities and is busy working it's new triple-play across the country. Russell Stanners CEO of Vodafone NZ said " Vodafone is a national operator in mobile and we'll take that philosophy to the fixed line world as well,"

NZ's a small country so costs are manageable, but if Vodafone were planning such a move in the UK, they should look at THUS Plc. THUS already has the country wide LLU network in place and their Demon Internet subsidiary has many years of experience in providing consumer broadband and telephony.

Tiscali to sell off Broadband Business to Vodafone

Tiscali's 2million UK subscribers are to be sold on again as yet another consumer broadband company does a Python; exit stage right shouting "run away, run away".

The tiny premium proposed on the share value underlines what we industry watchers have long been saying; that there is no value in the consumer broadband as a standalone business. It only makes sense if you either own the networks, or can supply it as part of a total communications package; even that model is unsustainable.

I strongly suspect that long term Vodafone will look buy more NGN/LLU providers. They've shown capable with the piecemeal acquisition of Arcor Germany's No2 telecoms provider last week.