The European Commission has cleared the proposed creation of a 50:50 joint venture in the Netherlands by Vodafone and cable company Liberty Global that is expected to create synergies worth €3.5 billion between the two companies.
Vodafone has agreed to sell its Dutch consumer fixed line business in exchange for being allowed to go ahead with the joint venture.
In the Netherlands, Vodafone provides mobile communications service, retail fixed line telephony, broadband internet and TV services. Vodafone owns its mobile network and relies on wholesale access to the copper and fibre infrastructures from incumbent KPN for its other services.
Liberty Global, meanwhile offers retail fixed and mobile communications services in the Netherlands, under the name Ziggo. Ziggo owns and operates a cable network, provides fixed telephony, broadband internet and TV services over cable as well as mobile services as a mobile virtual network operator(MVNO).
Vodafone Netherlands’ consumer fixed business has a customer base of more than 120,000 with a high triple-play penetration rate. The divestment could potentially also include MVNO access subject to agreement on commercial terms.
Margrethe Vestager, Commissioner in Charge of Competition Policy
The telecoms market is of strategic importance for our digital society. I am pleased that we have been able to approve the creation of the joint venture between Vodafone and Liberty Global in the Netherlands. The commitments offered by Vodafone ensure that Dutch consumers will continue to enjoy competitive prices and good choice.
