Vodafone acquires YOU broadband to better compete with Reliance Jio

By March 30th, 2016 AT 4:30 PM

Vodafone India has inked an agreement to buy YOU Broadband for around Rs 400 crore, as part of the telco’s global effort to increase its cabled or fixed line network, Economic Times reported on Tuesday.


The acquisition will help Vodafone to better compete in high data consuming cities against Mukesh Ambani’s Reliance Jio, which is expected to launch commercial operations later this year. The report said that the transaction has now gone for approval by the Foreign Investment Promotion Board (FIPB). Upon approval, the deal will be finally concluded.

TRG Capital-owned YOU Broadband India Ltd has around 3,000 km of optic fibre and 6,000 km of last mile cables to homes across 12 cities including Mumbai, a key data market for Vodafone.

YOU and Vodafone have been in talks for almost half a year. The report said that investment bank Rothschild advised Vodafone and ICICI Securities was the investment banker to YOU Broadband.

Passionately following the Indian #Telecom Industry for over a decade from Business, Consumer and a Technical perspective. My primary focus area is Consumer & Digital Experience.

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NagendraVilasS GopalVilasdeepak das Recent comment authors
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Vodafone is digging their own grave by acquiring You Broadband which is not even having a 0.1% positive rating in customer service. All the best Vodafone for digging your own grave.


Ohh, then Vodafone will be a customer of Tata communications as You broadband is buying bandwidth from TCL. No one knows here that Tata comm has one of the largest undersea fiber network in the globe even Vodafone can’t compete TATA’s presence. Vodafone is a pure mobile service provider and trying to capture broadband market.

S Gopal
S Gopal

Tata Comm got this on a platter when Government of India sold VSNL (Videsh Sanchar Nigam Ltd) for a song to them. Vodafone is trying to augment its revenue through the acquisition of YOU Broadband. Earlier in the UK, Vodafone in the retail segment was providing only mobile services, however, recently it has started providing Broadband services. You Broadband under the ownership of Vodafone will be a game changer and will provide stiff competition to ACT and maybe to MTNL and Airtel. For now BSNL does not need to worry for YOU Broadband or for that matter any other Broadband… Read more »


Besides aquiring VSNL, Tata has acquired Teleglobe, the biggest undersea fiber network and then Neotel, from south africa. Tata has big revenue in the global market and Vodafone was trying to aquire that business. If Vodafone would have acquired TCL, we would have to pay more money on data what we are paying now. And thank god, the deal wasn’t finalised. Vodafone is a cheat company and it is today’s East India Company. But people doesn’t understand these things. I have personally used Vodafone and got charged a huge amount. So I request people not to take any service from… Read more »

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