The second largest mobile operator in India, Vodafone India is rumoured to be in talks to buy broadband service provider YOU Broadband for around Rs 400 crore, reported The Economic Times India, citing two persons familiar with the deal.
YOU Broadband has around 3,000 km of optic fibre and 6,000 km of last mile coaxial cable network to homes across 12 cities including Mumbai. In addition, it also offers VoIP, WiFi and Value Added Services such as online gaming services.
YOU employs over 1400 people across 12 cities and plans to double its talent base over the next two years. The company has so far invested Rs.4 billion (~USD59 million) on broadband cable infrastructure and partners key vendors in the space including Motorola, Avvaya, Commscope and Cisco.
Just two weeks back, Vodafone India was reported to be in an early discussion to acquire 4G LTE spectrum from Tikona Digital Networks, a Mumbai-based Internet service provider, to expand its high-speed broadband network across the country.
Acquisition of YOU Broadband is expected to provide the capacity required by Vodafone to expand its 4G LTE coverage following the rollout of its 4G service in South India last month.
