Vodafone buys iHug -Updates with details
Vodafone has bought iHug, for $41 million. 
The announcement comes as no surprise: Vodafone has been "stalking" fixed-line ISPs for a while now, trying to purchase one in New Zealand in line with its policy change that charts out a wired future in conjunction with the wireless one.At this stage it's not known what Vodafone intends to do with iHug, but it's a safe bet it will use it for its "ZuHause" service, as launched in Germany and other European countries.
Update I Here's my Computerword story about the deal.
Update II Vodafone press release:
Vodafone New Zealand today announced it will acquire ihug New Zealand Ltd from iiNet for $NZ41 million.
CEO Russell Stanners says the deal further strengthens Vodafone’s position in the telecommunications market with customers benefiting from the combined strength of both companies.
“It’s a perfect fit. Right now, we are the leaders in mobile, however we only have 20% share of the telecommunications market. When combined with ihug’s strength in fixed line broadband and calling, we can develop and deliver even more compelling propositions for our customers.”
Mr Stanners says the deal is an important step in the evolution of Vodafone’s business in New Zealand.“We will remain a mobile-centric business but the addition of ihug complements our telecommunications offering in New Zealand.
“It’s a very exciting time, with two strong challengers coming together to take on the competition,” he says.He says ihug will operate as a standalone company.
“ihug already has a strong brand in the ISP broadband market which New Zealanders identify with, a capable management team and we fully support their growth plans.”ihug CEO Mark Rushworth believes it will be a smooth transition as the two companies have similar brand values.
“We’re thrilled with this news. A strong and dynamic parent company like Vodafone is just what we need at this stage of our growth,” he says.
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Comment by Matt Perot, on 9-OCT-2006 22:08
Just wanted to note, Juha, that Vodafone Germany's "Zuhause" package is currently 100% wireless, although it's possible that the only thing standing in the way of their using DSL is Germany's current regulatory conditions, which require customers to maintain their landline in order to use DSL. How far off are you New Zealanders from removing that restriction?
Comment by sbiddle, on 9-OCT-2006 22:11
Does this show that Vodafone believe HSDPA will simply not be able to offer a true alternative to ADSL for some forseeable?
If HSDPA was capable of delivering the speeds and capacity required then there would be no need to have a fixed line solution.
Comment by oohaah, on 9-OCT-2006 23:07
HSDPA was never designed to replace fix lines for broadband access, and voda does not position it in that way. Its for the mobile user thats not necessary a buniness user anymore.
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Comment by Simon, on 9-OCT-2006 21:03
Jeeze JuHa, can't you get the capitalisation right. Or do you work for CoMputErwOrlD?
It is ihug, Ihug or perhaps IHUG. Never iHug.
I relise that iiNet can't do it right and the Ihug marketing Dept wasn't much better but after having written a few hundred stories on them I would have thought you would have a rough idea.