The recent deal between Bell Atlantic Corp. of the United States and UK-based Vodafone AirTouch, creating a new wireless business with a value In excess of R420billion, will bring significant benefits to Vodacom subscribers, says Vodacom`s Joan Joffe.
"The deal means that Vodacom (31,5% owned by Vodafone Airtouch) is now part of the largest cellular entity in the world. It is envisaged that transparent international roaming in the United States will become available to Vodacom subscribers some time next year. This will mean uncomplicated cellular communications for Vodacom subscribers travelling across the US. It also means that Americans on the Vodafone Airtouch Bell Network will have similar transparent roaming while they are in South Africa, which will result in a good incoming revenue stream for this country," she says.
"The purchasing power of the merged group will be enormous, and Vodacom will be able to participate in centralised buying to obtain better prices which will benefit Vodacom subscribers.
"Vodacom`s access to the technology and practices of the new entity will be of tremendous benefit to the company and everyone associated with it," said Ms Joffe.
The transaction, which is expected to be complete within six to twelve months, will see Bell Atlantic-GTE with 55% and Vodafone AirTouch with 45% of the new company.
The agreement also provides that Bell Atlantic and Vodafone AirTouch will work together on global business synergies, such as coordinated handset and equipment purchases, global corporate account programmes, global roaming agreements, and development of new services, technologies and applications.
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