Vodafone steps up C&WW integration

Vodafone steps up C&WW integration

Vodafone has stepped up its integration of Cable & Wireless Wordwide (C&WW) thanks to the creation of a new business-focused Group Enterprise unit, following the mobile operator's £1 billion purchase of the telecoms firm.

The new unit will be up-and-running from January 1st 2013, with Nick Jeffery, the current chief executive of C&WW, being appointed as the Group Enterprise director responsible for its operation.

Four vertical teams will form the group, with Vodafone Global Enterprise, Vodafone Carrier Services, Machine-to-Machine solutions and Hosting and Cloud Services all reporting to Mr Jeffery.

Each of the teams will have a presence in 50 nations around the world and will be supported by Enterprise Channels and Sales Operations, with Enterprise Products and Marketing teams providing access to standardised processes, tools, platforms and products across the Enterprise unit.

Industry experts had predicted that it would take some time, perhaps up to a year, for Vodafone to begin assimilating C&WW's operations.

However, following the purchase of the company it became clear that the systems used by the struggling telecoms giant were, in fact, more robust than first thought, which has increased the speed of integration dramatically.

Vodafone also revealed that after acquiring C&WW it became clear that businesses wanted combined services and products, which also encouraged the British firm to bring the process forward

A statement from Vodafone read: "The creation of a Group Enterprise unit and acceleration of C&WW's integration will allow us to build on our strength in the Enterprise segment. As announced in September 2012, we expect to incur cumulative integration costs of approximately £500 million by March 2016. This is expected to deliver cash flow synergies of £150 million to £200 million per annum by March 2016, resulting in operating free cash flow for the Group in that year of £250 million to £300 million from the acquisition."

The purchase of C&WW was part of Vodafone's plan to strengthen its enterprise offerings and the acquisition has double the size of the firm's corporate business, as well as giving a timely boost to its services in the UK.