Vodafone targets quad-play market in Malta with Melita merger

Vodafone has announced it will be merging with broadband provider Melita to offer a quad-play solution in the Maltese market.

As it currently stands, Vodafone Malta focuses primarily on the mobile and enterprise market, though the new combination will add cable, broadband and pay TV capabilities to the armoury. The move itself has a challenge in mind to current market incumbent Go. Vodafone currently holds the leads in the mobile market share, however Go already has an multi-play proposition, perhaps putting it in a stronger position in the long-term.

While converged services are becoming much more of a talking point in the UK, it would appear the Maltese are miles ahead of us. According to the Malta Communications Authority, in the fourth quarter of 2016, 78.7% of fixed broadband connections and 68.4% of postpaid fixed lines were sold in a bundle.

The transaction, which values Vodafone Malta at €208 million, is still subject to approval from the competition authorities, but will see the current shareholders of Melita own 51% of the newly combined company and Vodafone Europe taking the remaining 49%. The pair expect the deal to close in the second half of 2017.

Assuming the merger is approved, the current CEO of Melita, Harald Rösch, will take charge, with Vodafone Malta CFO, Caroline Farrugia, taking care of the numbers. Amanda Nelson, who is currently the CEO of Vodafone Malta, has been left in the cold to date. She is a Vodafone lifer though, so you’d assume she’ll be found a new home before too long.