Vodafone to acquire Turkish fixed line provider
UK-based operator to add to presence in mobile market with purchase of fixed line and data service provider Borusan Telekom
UK-based operator Vodafone is set to increase its footprint in Turkey's telecoms market following today's announcement that it has agreed to acquire fixed line and internet operator Borusan Telekom.
Vodafone did not disclose how much it would pay for Borusan Telekom, an enterprise-focused provider of fixed voice and data services, which Vodafone said had gross assets of US$18 million and net revenues of US$70 million as of 31 December 2008.
Vodafone already has a presence in the mobile market in Turkey after it purchased state-owned Telsim in 2005 for US$4.5 billion. It is the second-placed operator in the country with 14.9 million subscribers, behind market leader Turkcell.
Turkey has proved to be a challenging market for Vodafone, and earlier this year, Vodafone's Turkish operation was singled out for criticism in the firm's first set of quarterly results, with its performance described by group CEO Vittorio Colao as "disappointing".
However, last month Colao said progress was being made following Vodafone's attempts to affect a turnaround in the operator's fortunes by improving network quality, increasing distribution channels and launching more competitive offers.