Now Vodafone does broadband too

A mobile operator facing the prospect of slowing growth does a lot of strange things – overpay for a company in emerging growth market for instance. Or start moving out of core businesses, chase the IMS dream and get into the broadband business. And Vodafone fits the bill perfectly.

The company is going to launch a broadband service, Vodafone At Home, in the highly competitive UK market on January 7, 2007. Vodafone, world’s largest mobile operator will sell an 8 megabits per second connection for $49 a month to its post paid subscribers. This includes free calls to all UK numbers. The contract will be for 18-months. The deal is an extension of its partnership with British Telecom.

How successful this service will be remains to be seen. It is about $10 more expensive than Carphone Warehouse’s Talk Talk service. Orange and Sky offer “free broadband” if customers sign-up for other services like mobile and satellite television.