Last year Vodafone slashed commission it pays to 3,500+ newsagent retail partners by 37%. Today I read a GigaOM that they have paid US$11 billion for Hutch Essar, the third largest mobile company in India. Okay, I agree I am drawing a long bow. However, Om Malik says
Vodafone historically has been one of the worst telecom operators when it comes to mergers and acquisitions – bad deals, ill-timed exits and overpaying are part of company’s legacy. By putting a valuation of close to $19 billion for Hutch Essar, the third largest mobile company in India, with about 24 million mobile subscribers, the British giant has ensured that legacy remains unchanged.
Maybe if Vodafone focused on its existing customers and service network more it would improve the return from what it has rather than cost cutting against weak small businesses and overpaying in acquisitions.