Vodafone
AirTouch Monday outlined plans with Vivendi
to establish an Internet company that will run a multi-access European
portal.
The new company is split 50/50 between the two partners who will
now look for ways of building cooperation between the duo’s
respective mobile operations.
Chris Gent, chief executive of Vodafone AirTouch, said that the new Internet company would largely complete the
European coverage for Vodafone AirTouch’s global Internet platform
in addition to providing exclusive access to more content and services.
“It also creates the opportunity to establish a broader fixed-line group
in three of Europe’s leading markets,” said Gent.
One project already on the table is for the new company to
become an 80 per cent investor in a wireless Internet fund,
with SoftBank holding the remaining 20 per cent. The fund
will be capitalized at between 100 and 150 million euros
(approx. $100 million to $150 million).
The deal with Vivendi is part of Vodafone’s long campaign
to acquire the German group Mannesmann. If successful with
Mannesman, Vodafone AirTouch has agreed to procure an
additional 7.5 per cent interest in French telecoms operator
Cegetel.
At the same time, Vodafone AirTouch is giving a guarantee
that it will not attempt to acquire interests in Vivendi
without approval by Vivendi’s board for three years — a
guarantee conditional upon its hostile Mannesmann bid being
successful.
Despite all the conditions, Vivendi’s Chief Executive
Jean Marie Messier said he was extremely happy with the agreement,
saying it would create Europe’s first company of the Second
Generation Internet Age.
“The Internet world is about to experience a high-speed
technology revolution that will eventually allow even the most
sophisticated content to be transmitted to devices of every type,”
said Messier.
The alliance will have the largest customer base in Europe
with almost 70 million subscribers.
