Abstracts » Business, international

What next?

Article Abstract:

Mannesmann is being acquired by Vodaphone AirTouch, and this deal is likely to trigger further consolidation in the telecoms industry. Vodaphone may have problems in integrating it culture and networks with Mannesmann's. There are also challenges arising from the integration of mobile phone and internet technology. Vodaphone will benefit from economies of scale, but disruption can be expected from the development of the new technology. One company well placed to compete is Orange, which Vodaphone is considering selling.

Economic aspects, Internet, Cellular telephone services industry, Cellular telephone services

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Hard pounding

Article Abstract:

Vodaphone AirTouch has made a bid for Mannesmann, which Mannesmann opposes, though the company's chief executive, Klaus Esser, argues that stockholders should decide. Esser argues that Mannessmann is right to focus on a mix of fixed-line and wireless telecoms, as opposed to the wireless strategy of Vodaphone. This is also the strategy of Orange, which has focused on mobile operations, aiming at the mobile data market. Mannesmann also has greater control of the assets it owns than does Vodaphone, though Vodaphone has some good quality assets.

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