Merger of Vodafone & Hutchison in Australia will strengthen local mobile competition

Published: 16 Feb 2009

On February 9th 2009 Vodafone Australia (Vodafone) and Hutchison Telecommunications Australia Limited (Hutchison) announced an agreement to merge their telecommunications businesses in Australia. Both Vodafone and Hutchison will have an equal ownership of 50% in the joint venture, which will be renamed VHA Pty Limited (VHA).

The deal will result in the gradual phasing out Hutchison's '3' brand in Australia as Vodafone becomes the main brand. VHA will market its products and services under the Vodafone brand, but will retain exclusive rights to use the 3 brand in Australia during a transition period and thereafter.

The combined entity will have approximately 6 million customers and combined total annual revenues of approximately A$4billion. Utilising existing network arrangements and planned network build, VHA will operate a mobile network with at least 95% population coverage, of which 63% will have access to high speed 3G services. Upon completion of additional network roll outs, VHA's 3G population coverage is planned to increase to 95%.

Find out what are some of the strategic implications for the Australian market. Click here to download the complete article.

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