To compete in high data consuming telecom circles like in Metros, India’s second largest telecom operator Vodafone India has signed a pact to acquire YOU Broadband India Limited.
A deal valued for around Rs 400 crore will get its final node on approval from the Foreign Investment Promotion Board.
YOU Broadband is a category ‘A’ ISP and India’s first ISO accredited broadband service provider with presence in twelve Indian cities including Mumbai, Pune, Gurgaon, Chennai, Bangalore and Hyderabad. The company has laid over 3000 km of optic fibre cable and 6000 km of last mile coaxial cable network.
The acquisition is mainly to strengthen Vodafone’s data speed over its 4G and 3G networks by offloading wireless traffic onto the cables. A cabled backhaul for wireless networks will significantly enhance the capacity of cell towers.
The deal will offer Vodafone a greater chance to compete with upcoming Reliance Jio Infocomm which has said to laid mega optical fibre back haul all across India.