Vodafone plans pan-European logistics hub in Luxembourg

Vodafone has tapped up MG Real Estate to develop the new 26,000 square metre warehouse, which will be constructed in Luxembourg’s Bettembourg Logistic Park.

The new facility is supposed to make moving around telco equipment like antennas and routers between regions more efficient – Vodafone says that 88% of its in-market warehouses in Europe can be reached from Luxembourg within 24 hours.

It will be managed by the Vodafone Procurement Company, which centrally monitors the firm’s end-to-end supply chain in real time across its markets using ‘digital technology’ – not that you’d expect this that sort of thing to be done with pen and paper in 2024.

“The creation of a new pan-European logistics hub in Luxembourg is in line with our strategy to simplify the way we run Vodafone and our commitment to being as cost-efficient as possible in our operations and supply chain,” said Vodafone Group’s Chief Financial Officer Luka Mucic. “This investment will also reinforce Luxembourg’s position as a world-class logistics centre.”

The release reassures us that the building is ‘targeting outstanding BREEAM sustainable certification by using sustainable materials, processes and technologies to minimise carbon impact.’ Building is expected to kick off early next year, and the shiny new pan-European logistics hub is expected to enter operation in 2026.

Over in the UK, the Competition and Markets Authority (CMA) is still considering whether it will give the green light to Vodafone and Three’s proposed merger plans, and is due to make a decision by early December. A potential lessening of competition in the retail and wholesale markets as a result of the deal have been flagged up as areas of concern.  

Late last month, the firms jointly threw out some additional concessions on top of an £11 billion network investment programme, and a plan to sell spectrum to rival player Virgin Media O2, to try and alleviate such concerns.

"While our view is that the CMA's concerns about price increases are unfounded, we will commit to maintaining tariffs at £10 or below for two years from the completion of the merger for value-focused customers on the SMARTY brand, social tariffs on both the SMARTY and VOXI For Now brands, and continue measures to protect registered vulnerable customers," read the statement.

With regards to wholesale, they stated that they will provide a reference offer that encourages MVNOs to access their additional network capacity.The saga has been rumbling on for a long time but should come to a conclusion in a couple of months, unless the decision gets pushed back again. For a deep dive into the whole affair, check out our article potential paths to Vodafone/Three merger approval.