Vodafone buys iHug

Vodafone has bought New Zealand phone and internet company ihug for $41 million - giving it entry into the internet and toll calling markets.

Vodafone chief executive Russell Stanners said yesterday that the deal strengthened the UK company's position in the market, with customers benefiting from the combined strength of both firms.

More info:
New Zealand Herald - Vodafone pays premium in ihug deal - Monday 09, October 2006 23:26.00 PM
Vodafone buys iHug for $36m | Business | The Australian
Vodafone New Zealand Buys ihug Entering ISP Market
Vodafone buys iiNet's NZ business: ZDNet Australia: News: Communications

ihug was New Zealand's third largest ISP (behind Xtra and TelstraClear), before it was bought, then absorbed by Vodafone New Zealand (the country's largest mobile phone operator). According to 2005 estimates, it had over 100,000 internet and phone subscribers. Before 2000 Ihug was New Zealand's largest ISP but as other ISPs began offering flat rate services, many customers opted to transfer to those providers, particularly Xtra.

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Large companies often acquire small companies.

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