Quote:
Originally Posted by Chrysalis
seems a bad move to me, the business division makes more profit compared to costs and turnover, but VM thinking short term for quick boost of cash but reduce their profits in the long term.
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It's simplistically outsourcing the Business division. VM get a big cash handout and also lose several hundred people of their books, and all associated costs.
VM aren't selling any Network, so their not selling any fixed assets, what they are doing is selling their order book. Any buyer would have to then pay VM for using their Network.
The risk is, over time, if they sell to C&W or Thus, is either carrier migrating services over to their own Networks. They'll be able to move the backhaul over to their own Core Network.
Whatever the answer it will be complicated, as the business division cannot just be ripped out from VM as it integral to the Network.
Also there would be nothjing stopping VM from starting a new Business Division after they've sold the old one.