UK-based telecoms giant Vodafone Group has announced the creation of a new Group Enterprise unit, which will begin operating from the start of next year. In unveiling the organisational addition, the group noted that Nick Jeffrey, currently the CEO of Cable & Wireless Worldwide (CWW), which Vodafone agreed to acquire in April 2012 for approximately GBP1.044 billion (USD1.7 billion) in cash, will head up the new unit. It will comprise four divisions – Vodafone Global Enterprise, Vodafone Carrier Services, Machine-to-Machine solutions and Hosting and Cloud Services – each of which will operate worldwide.
Alongside the announcement, Vodafone has also issued an update on the progress of its integration of CWW. Claiming that it had ‘become clear that there is strong customer demand for combined products and services’, it has revealed that it is accelerating the integration process. As a result, from 1 January 2013 Vodafone will begin merging the following units/activities: CWW’s and Vodafone Group’s respective UK-based enterprise businesses; CWW’s international businesses, Carrier Services, Hosting and Cloud Services, and product activity with the newly created Group Enterprise unit; CWW’s customer service with Vodafone UK’s Customer Operations; CWW’s Finance, Human Resources, and Legal and Regulatory activity with those of Vodafone UK; and CWW Technology with Group Technology.
Reiterating the financial impact of the process, Vodafone noted that it expects to incur cumulative integration costs of approximately GBP500 million (USD800.4 million) by March 2016, while the corporate revisions are expected to deliver cash flow synergies of between GBP150 million and GBP200 million per year by March 2016.